2/6/22, 9:14 PM Decentralised governance will spur growth

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Decentralised governance will spur

growth
Bhubaneswar, Nov 22 | Updated: Nov 23 2005, 05:30am hrs

A decentralised government system with effective monitoring mechanisms will ensure better
services to citizens and also a higher rate of economic growth. This was the consensus at a
seminar on state finance which also stressed the urgency of consolidation of state finances by
speeding up reform process in the state tax system and debt management so as to create The Financial Express
productive capital assets and meet social services expenditure. Like Page 1.8M likes

The two-day seminar covered topics like state government budget constraints, social services
and policy research network to strengthen reform. It was organised by the National Institute The Financial Express

of Public Finance and Policy (NIPFP) New Delhi, in association with Administrative Staff 8 minutes ago

College of India (ASCI) Hyderabad, and the Asian Development Bank (ADB). Covid-19: Madhya Pradesh sees
5,171 cases, 6 deaths, 8,373
Setting the tone of the seminar, NIPFP director Govinda Rao said that states are not able to recoveries
#COVID19
deliver adequately because of steady deterioration in state finances. There is a steady increase
in fiscal imbalance because of poor revenue performance and higher borrowing. Because of
the fiscal stress, the state is not able to make fresh investment in development of
infrastructure and is not able to discharge its duty towards the disadvantaged.

He suggested that there should be a programme for reforming state finances and creating a
competitive environment in a globalising environment. For improving service delivery, there FINANCIALEXPRESS.COM

should be fiscal decentralisation with emphasis on capacity-building of local governments. Covid-19: Madhya Pradesh s…
The COVID-19 tally in Madhya Prad…
ASCI advisor G Narendra Kumar said that India is in the process of refining the process of
decentralisation of governance, but there is a need for policy intervention to implement a 2 Comment Share

vibrant system. Local bodies should be made more accountable and the flow of funds should
be tied up with need and performances.

Presenting a paper on social service delivery, Narayan Valluri said increased spending in the
social sector should be accompanied by simultaneous efforts at achieving productivity gains
through efficiency in use of resources and better value for money, improved targeting, and
association of the private sector to supplement state efforts and to generate competitive
environment.

Dr Narender said that there has been excessive emphasis on capital investments in
infrastructure particularly on roads, irrigation and urban sectors without having a systematic
approach to operation and maintenance. He, however, emphasised that good asset
management, higher private sector and community participation are key to correcting this
imbalance.

NIPFP senior fellows Tapas Sen and R Kavita Rao, associate professor of Indira Gandhi
Institute of Development Research Rajendra Vaidya, ASCIs Dipayan Dutta Choudhuri and
Crisil advisor Ravikant Joshi presented papers at the seminar.

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2/6/22, 9:14 PM Decentralised governance will spur growth

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