Issues in Fiscal Decentralization of Rural Local Finance in Haryana

The 73rdconstitutional amendment was a remark able step in the history of fiscal decentralization of Indian federal Finance. Panchayats in India are known as one the oldest system of administration but at that time local units were not functioning as institution of local self-government. These Panchayats were governed by local elites and the role of common people was not as important as we see today after implementation of 73rd constitutional amendment in 1992. Affirmative action under article 243T, opened scope for Women and other weaker sections of the society to partake in the governance of Panchayats though. Financial powers were highly centralized during British rule. After independence several attempts were made to see feasibility of strengthening local governance. The final attempt was made in the form 73rd constitutional amendment when Panchayats were recognized as a third tier of Indian fiscal federalism. This paper analyzes state of fiscal decentralization of rural local finance after implementation of the 73rd amendment Act.