Who introduced financial decentralization in India?

Who started the process of decentralization of finances in India? Notes: Lord Mayo or Lord Naas served as 4th Viceroy of India from 12 January 1869 to 8 February 1872. He started the process of decentralization of finance.

Why is fiscal decentralization important?

Fiscal decentralization is considered as an important policy instrument to achieve economic efficiency and ensure effective governance through financial autonomy of provincial governments. … It empowers the lower level governments through financial autonomy and administrative empowerment.

What is fiscal decentralization in local government?

Fiscal decentralization involves shifting some responsibilities for expenditures and/or revenues to lower levels of government. … (Of course, some countries do derive the benefits of local expenditure autonomy as a result of local governments’ ability to access the funds and circumvent the central mandates!)

What is the rationale for a fiscally Decentralised system?

The rationale for decentralization in the context of CDD includes economic efficiency, public accountability, and empowerment: It gives greater voice and choice to citizens to influence decisions that affect their lives. It allows local governments to respond dynamically to communities.

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What is federal finance in India?

In a federal system of finance, all items of revenue and expenditure are divided among the central, state and the local governments. … R.N. Bhargava, “Federal Finance means the finance of the central government as well as the state governments and the relationship between the two.”

What are the benefits of decentralization?

Advantages of Decentralisation:

  • Reduces the burden on top executives: …
  • Facilitates diversification: …
  • To provide product and market emphasis: …
  • Executive Development: …
  • It promotes motivation: …
  • Better control and supervision: …
  • Quick Decision-Making:

What is the concept of decentralization?

Decentralization—the transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sector—is a complex multifaceted concept.

What is an example of decentralization?

An example of a decentralized organization is a fast-food franchise chain. Each franchised restaurant in the chain is responsible for its own operation. Broadly speaking, companies start out as centralized organizations and then progress towards decentralization as they mature.

What are the features of decentralization?

What Are the Features of Decentralization?

  • Delegation of authority to lower management.
  • Faster response time.
  • Quick decision making.
  • Development of individual departments.
  • Employee engagement and development.

Why is decentralization importance in local government?

Important arguments in favor of decentralizing government are that it: creates an efficient and reliable administration, intensifies and improves local development, better ensures the rights of the local population to have a voice in government, and better protects minorities.

What is class 10 decentralization India?

The process of of dispersing or distributing decision making power to the smaller units is known as Decentralisation. Taking away the power from the Supreme level and the state level and giving it to the local level is called decentralisation.

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Why is decentralization needed in India?

Decentralisation is the need in India because: 1. India is a vast country, central govt. is unable to hear the needs of people from different areas. … It helps women to participate in decision making process because 33% seats are reserved for women in local govt.

What are the advantages and disadvantages of decentralisation?

Advantages and Disadvantages Of Decentralisation

  • Motivation of Subordinates. …
  • Growth and Diversification. …
  • Quick Decision Making. …
  • Efficient Communication. …
  • Ease of Expansion. …
  • Better Supervision And Control. …
  • Satisfaction of Human needs. …
  • Relief to top executives.

Which country has a federal finance system?

The Indian Constitution gives federal structure to the nation by specifying the distribution of powers between the central government and the states in Part XI. Some examples of federal state are the United States, Canada, Brazil, Germany, etc.

What are the problems of federal finance in India?

Another problem in federal set up is the tax competition, In order to attract more capital and trade from other parts of the country, one state government may reduce or abolish certain type of taxes, this policy may sometimes benefit backward states.

Who is chairman of Finance Commission?

Finance Commission

Commission overview
Headquarters New Delhi
Commission executives N. K. Singh, IAS, (Chairman) Ajay Narayan Jha, IAS, (Member) Prof. Anoop Singh, (Member) Ashok Lahiri, (full time Member) Prof. Ramesh Chand, (part time Member) Arvind Mehta, IAS, (Secretary)
Website fincomindia.nic.in