India - Public Financial Management and Accountability in Panchayati Raj Institutions (Rural Local Governments) : Synthesis Study
This Study has been designed to serve as a reference point for (i) mapping the Public Financial Management and Accountability (PFMA) arrangements currently in place; (ii) highlighting good practices that have emerged across States relative to PFMA; and (iii) summarizing issues that are most relevant to the Government of India, State Governments and the Bank when it comes to financing future projects through Panchayati Raj Institution (PRIs). This Synthesis also captures the recommendations of the Eleventh and Twelfth Finance Commissions, as well as the initiatives of the recently constituted Ministry of Panchayati Raj (MoPR). Inter alia, the MoPR has laid out a road map for enhancing the accountability of PRIs to their constituents. Because devolution of powers has resulted in different models in the various states, this study has not attempted prescriptive solutions or standard models for implementation. Rather, this study offers input to the design of Bank interventions and activities relating to Decentralization; it is not in itself a Decentralization study. This Study covers PRIs in six Indian states, including (i) Karnataka, Orissa and Uttar Pradesh where the Bank has carried out State Financial Accountability Assessments (SFAA); (ii) Rajasthan and West Bengal where several good practices have emerged at the urging of the state government and/ or the public at large; and (iii) Uttaranchal where the Bank has changed the design of existing projects, such as the Watershed Project to route funds through the PRIs as much as possible.