Federal Implications of Direct Funding to Local Governments: Issues and Trendspaper

Abstract

The present paper attempts to look into the nuances of the direct funding of local government from a vantage point of fiscal federalism in India and also the dynamics of financial decentralization. The reports of finance commissions regarding the devolution of tax powers to local governments in order to make them financially autonomous has been looked into with a incisive constitutional mindset. The impact of centrally sponsored scheme in this regard has been looked into by the researcher in order to get the exposer of current federal implications of the same where the party politics and an attempt to create loyal vote bank is driving the pace of CSS which is affecting the fiscal federalism. The GST has also affected the tax structure of country in many aspects and in paper the impact of it on local government has been contemplated.