PAISA for Panchayats
By Accountability Initiative, 08 Apr 2016

The PAISA for Panchayats research project extends AI’s PAISA methodology to track fund flows and implementations processes at the Panchayat level. By focusing on understanding the state of fiscal devolution to rural local governments, this paper answers 2 key questions -

  • What are the overall trends in fiscal devolution to Panchayati Raj Institutions (PRI) in Karnataka?
  • How much money do Gram Panchayats actually receive?

To answer these questions we studied 30 Gram Panchayats in Mulbagal taluk, Kolar district, Karnataka. Our research shows that despite the State’s pioneering efforts in improving intergovernmental fiscal transfers, the system clearly falls short of the State’s vision for effective devolution to Panchayats.

TR Raghunandan (Advisor to AI, co-founder Avantika Foundation, and former Joint Secretary, Government of India, Ministry of Panchayati Raj) explains the motivation behind undertaking this research, the main findings and recommendations to the Government, as well as our plans to extend this work to other states in India.

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