
Atmanirbhar Panchayat Programme: Can Fiscal Autonomy Strengthen Grassroots Democracy?
The 73rd Constitutional Amendment gave Panchayati Raj Institutions constitutional status and strengthened the framework for decentralised governance. However, effective local self-government also requires financial capacity. Article 243H of the Constitution enables State legislatures to authorise Panchayats to levy, collect and appropriate taxes, duties, tolls and fees, and to provide for the assignment of revenues and grants to them. Thus, the constitutional framework recognises fiscal capacity as an important component of effective local self-government. Continued dependence on government grants, however, can limit the ability of Panchayats to respond independently to local priorities.






