New Delhi: A new report aimed at strengthening fiscal decentralisation and grassroots governance through better data systems has been released by the government.
Chief Economic Adviser Dr. V. Anantha Nageswaran on Monday released the Report of the Committee on Datasets for State Finance Commissions in the presence of Ministry of Panchayati Raj Secretary Vivek Bharadwaj and other senior officials.
Highlighting the importance of data-driven governance, Dr. Nageswaran said reliable, timely and detailed data is essential for State Finance Commissions (SFCs) to make effective recommendations on resource allocation.
He said citizens experience governance through basic services such as drinking water, roads, street lighting and Anganwadi facilities, making empowered Panchayats central to effective administration.
“The quality of decisions depends directly on the quality of data and analysis available,” he said, adding that the report would strengthen the information framework for local governance.
Ministry of Panchayati Raj Secretary Vivek Bharadwaj stressed the need for stronger coordination between State Finance Commissions and Central Finance Commissions. He said improved data systems would help enhance financial devolution and strengthen Panchayati Raj Institutions.
The report recommends creating Panchayat-level fiscal databases, standardising accounting systems, setting up dedicated SFC cells in states, adopting common reporting formats and preparing manuals to support future State Finance Commissions.
The report also highlights the need to use Panchayat-level data for better planning and decision-making in areas including finance, infrastructure, demographics and public service delivery.
Dr. Manish Gupta of the National Institute of Public Finance and Policy (NIPFP) said accessible and standardised data would improve the quality of fiscal devolution and help local governments function more effectively.
State Finance Commissions, constituted under Article 243-I of the Constitution, assess the financial position of Panchayati Raj Institutions and recommend principles for sharing resources with local bodies. The new framework is expected to support stronger local governance as part of the vision of Viksit Bharat @2047.
