Abstract

The study examines the impact of devolution through the Fourth State Finance Commission (FSFC) and the 14th Central Finance Commission (CFC) grants on social sectors, especially concerning women and children at the Gram Panchayat (GP) level. It investigates the implementation and monitoring mechanisms aimed at improving social outcomes using funds from FSFC and 14th CFC. Analysis of state finances reveals a growing dependency on funds from the Government of India, with own revenues decreasing over the years. Despite an increase in total expenditure, the share allocated to social sectors remains stagnant, indicating a need for reevaluation.

The study finds that GPs have limited authority in social service matters, primarily serving a supervisory role. Funds to Panchayat Raj Institutions (PRIs) come mainly through schemes and grants from FSFC and CFC, yet utilization has declined over the past six years. A sample study across 30 GPs reveals discrepancies in data availability, hindering comprehensive analysis. GPDP focuses primarily on infrastructure development, with demands for improved service quality in education and healthcare. However, GP capacity constraints and inadequate staff hinder the full realization of GPDP objectives. The study suggests a cluster approach at the block level for comprehensive planning, leveraging available funds and improving social indicators, while emphasizing effective GP implementation and supervision.

CBPS conducted a dissemination-advocacy workshop in collaboration with UNICEF Odisha, presenting findings from the study. For a summary brief of the workshop, interested readers can click here.

CBPS. (2018, August). An Analysis on Devolution of Funds to Panchayats under 14th CFC and 4th SFC and their impact on Outcomes for Social Sector with reference to Women and Children in Odisha. Bengaluru: Centre for Budget and Policy Studies.