Publication: India - Public Financial Management and Accountability in Panchayati Raj Institutions (Rural Local Governments) : Synthesis Study
Loading...
Date
2006-12-21
ISSN
Published
2006-12-21
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“World Bank. 2006. India - Public Financial Management and Accountability in Panchayati Raj Institutions (Rural Local Governments) : Synthesis Study. © http://hdl.handle.net/10986/19627 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Decentralization and Local Democracy in the World : First Global Report by United Cities and Local Governments 2008(Washington, DC: United Cities and Local Government and the World Bank, 2009)This overall picture of decentralization and local democracy in African countries shows significant progress at the strictly institutional level. No country now publicly opposes the implementation of decentralization policies. Local governments exist in all countries, and elections are held to elect local authorities. The extent of such progress must, however, be set against a number of persistent obstacles that continue to hinder a real progression of decentralization in Africa. Difficulties remain within states concerning the transfer of financial resources needed to match the devolved responsibilities. Local governments also face difficulties in increasing their own resources (aside from state-transfers and grants) at a faster pace. Ensuring the availability of qualified human resources at the local level and improving public access to local services are also fundamental issues of concern.Publication India : Synthesis Study of Public Financial Management and Accountability in Urban Local Bodies(Washington, DC, 2007)This study assesses the current state of Public Financial Management and Accountability (PFMA) systems in Indian urban local bodies. It identifies, analyzes, and documents good practices, focusing on their existing context, success factors, and replicability. It is important to mention that urban governance in India is a state subject and there are vast differences in the levels of reform that have achieved in different states. For the purpose of comparison, this study has developed good practice benchmarks in each PFMA area and used those to compare practices across Urban Local body (ULB)s. The study analyzes linkages between the legislative, budgeting, implementation, reporting, and oversight process in urban local bodies. Benchmarks and indicators have been developed for each strategic area. Analysis of policy, practice, and progress in each strategic area has also been conducted. This study synthesizes existing literature on PFMA in urban local bodies, identifies key PFMA areas where focused attention was required, and suggests ways forward. The main objectives are: 1) To describe the current PFMA environment in urban local bodies in India and identify replicable good practices; 2) To use the Public Expenditure and Financial Accountability (PEFA) benchmarks in developing good practice in each PFMA activity and to develop indicators for assessing PFMA in Indian urban local bodies; 3) To identify challenges and suggest priorities for improving the PFMA environment in Indian urban local bodies so as to feed into Jawaharlal Nehru National Urban Renewal Mission (JNNURM). This study does not focus on the financial performance or on quality of expenditure in terms of specific aspects of efficiency or effectiveness of spending by urban local bodies. It does not cover intergovernmental relations either in any level of detail except to the extent that such relations impact PFMA performance. It is important to mention that this study does not attempt to develop a scoring system for indicators and therefore does not rate relative performance among urban local bodies. It does however suggest as a key recommendation that states could adopt a scoring system or a "PFMA Report Card" for the urban local bodies as a means of comparison of PFMA performance to build a demand for better governed ULBs.Publication Community Driven Development and Accountable Local Governance : Some Lessons from the Philippines(Washington, DC, 2009-10-15)This study evaluates the connections between community-driven development (CDD) and decentralized local governance, and the need to identify strategies for operational integration. It aims to deepen the understanding of how the institutional environment for local governance interacts with CDD project operations. It gives special emphasis on the issue of accountability, analyzing how CDD operations perform in terms of strengthening the capacity of citizens and civil society to hold local authorities and public service providers accountable, and the capacity of the local government to be held accountable. The study utilizes a two-pronged approach. First, it assesses the institutional environment for accountability in local governance. Second, it examines the operations of two major World Bank-assisted CDD projects in two municipal case study sites. Given that CDD projects both shape and are shaped by local governance contexts in which they are embedded, the study investigates how CDD operations in the Philippines are affected by and are helping reform local governance conditions. It is from the analysis of this interface between CDD operations and local governance conditions that the study aims to generate policy and operational recommendations to enhance integration between CDD and local governance approaches. The analysis of the institutional environment for accountability in local governance often found an enabling policy and legal framework in principle, but severely limiting constraints in practice.Publication Strengthening the Governance and Performance of State-Owned Financial Institutions(World Bank, Washington, DC, 2007-08)Corporate governance arrangements define the responsibilities, authorities and accountabilities of owners, boards of directors, and executive managers of a company. Good corporate governance is as important for state financial institutions as for private sector companies. Many of the problems that commonly afflict state financial institutions can be associated with, if not attributed directly to, weaknesses in corporate governance. This note draws on guidelines recently published by the OECD and the Basel Committee for Banking Supervision to compile a comprehensive corporate governance evaluation framework relevant to state-owned commercial and development finance institutions. It highlights aspects of this framework that are considered to be of particular importance to state financial institutions by citing innovative practices in a number of countries. Finally, it presents a detailed case study of the governance arrangements in place at the Development Bank of Southern Africa.Publication India : Fiscal Decentralization to Rural Governments(Washington, DC, 2004-01-07)The objective of this study is to review panchayat finances, identify issues and make recommendations to improve the fiscal decentralization system. Using Kamataka and Kerala as case studies, this report describes the context for rural decentralization in India, summarizes the current fiscal situation of district, block and village panchayats, identifies the main problems arising from the current practice, and outlines a set of reform options that might better satisfy the objectives of the central and state governments. Kamataka and Kerala were examined because these two states are generally thought to be more advanced than others in implementing rural fiscal decentralization and are therefore relevant for drawing lessons for the rest of India. There is a hierarchical arrangement of center-state-local governance. The 73rd Amendment to the Constitution made India one of the most politically decentralized countries in the developing world. By the Constitution and in practice, local government has an urban and a rural stream. Rural local governments are divided into three levels: district (zilla), block (taluk), and village (gram) panchayats. The design and implementation of the decentralization program are a state government responsibility. However implementation of key aspects of the program is lagging. Districts and blocks have no taxing powers and little expenditure autonomy. Both in Karnataka and Kerala, they more or less function as spending agents of higher-level governments. Gram panchayats are closest to the people, have some independent taxing power, and some discretion in expenditure decisions. Hence they are the primary subjects of this study.
Users also downloaded
Showing related downloaded files
Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.