“Critically examine the significance of enhanced Finance Commission grants to urban local governments in strengthening decentralised administration and fiscal accountability in India.”

In India the local governments that run cities have a lot of work to do. They do not have enough money to do it. This is a problem. Even though the government said it would give them power when it made the 74th change to the Constitution this has not really happened. The Finance Commission is trying to help by giving governments in India more money, which is a good thing for the way the country is set up to make decisions. Local governments in India need this help because they have a lot of responsibilities such as the local governments.

The government made this change to fix a problem where the money was not being shared fairly between different levels of government. This move gives cities and towns control over how they plan and provide services to people. The government is also giving them money based on how they do their job, which makes them work more efficiently and be more responsible for what they do. This way of giving money is in line with the way most governments work today. It also helps cities and towns be more careful with money and be more open about what they’re doing with it. The move to give money based on rules helps to make sure that cities and towns are being responsible, with their finances and that everyone can see what is going on.

• There are still some problems with the system. For example the institutions do not have power to make changes. People in politics are also getting in the way. The way cities are run is not very organized.
• The cities are also too dependent on grants from places. This is a problem with governance structures and it is very fragmented. The limited institutional capacity is a challenge for governance.
• Therefore, while enhanced grants strengthen decentralised administration, their success depends on professional municipal cadres, stronger State Finance Commissions, and improved fiscal self-reliance at the local level.

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