Fiscal Decentralisation and Reforms Implementation: A Comparative Analysis of Two Indian Cities

By : Ramakrishna Nallathiga

Page No: 125-145

Abstract
Urban Local Governments (ULGs) are an important and integral part of the federal system of government in India. For a long time, they were under the control of State governments and were not functioning autonomously with regard to fiscal and administrative decision-making. The 74th Constitutional Amendment Act (CAA) was enacted to give more autonomy to the ULGs with regard to fiscal and institutional management that would pave the way for decentralisation. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) attempted to take forward the implementation of 74th CAA by suggesting the implementation of several reform measures as mandatory for accessing funding support under its mission. In this context, the paper is an attempt to analyse the fiscal decentralisation and reforms implementation with reference to two Indian cities – Hyderabad and Pune. The study traces the efforts made to promote fiscal decentralisation in India and impediments they face while achieving them, especially at the state government level. Later, it analyses the grant funds patterns and trends and reviews the progress of the select study cities with reference to decentralisation reforms implementation. The results imply the need for furthering decentralisation through fiscal support to the ULGs as well as reform implementation commitment from the upper-tier governments.

Author
Ramakrishna Nallathiga, Faculty Member, School of Real Estate and Facilities Management, NICMAR University, Pune.
 

DOI: https://doi.org/10.32381/NL.2025.57.02.1