Study Findings

This study revealed the faulty design of panchayat finance in Tamil Nadu. The appearance of decentralization of powers is deceptive. The three articles in this monograph analyze deeply how provisions of the constitutions are violated through operationalizing the decentralization design.

Recommendations

It suggests a new sound local body finance policy and a local body financial management system for Tamil Nadu. Further, it recommends that tax reform is the need of the hour from the perspective of local bodies with a view to increase the tax domain of local bodies. It also suggests that the share of local bodies in the resource pool of the centre and state governments has to be enhanced. Finally, a data generation system should be in place at the ground for effective and efficient decision and policy making.