India needs a second generation of decentralisation reforms

The article advocates for a "second generation of decentralisation reforms" in India, emphasizing the need to genuinely empower local self-governments (Panchayats and Municipalities) by devolving "funds, functions, and functionaries" (3Fs). It critiques the current system where decentralisation exists on paper but is centralized in spirit, despite the 73rd and 74th Constitutional Amendments. The authors argue that true decentralisation is crucial for better service delivery, local economic development, and enhanced accountability, citing examples like Kerala. They propose strengthening State Finance Commissions, real local planning, capacity building, and accountability mechanisms, urging the 16th Finance Commission to play a pivotal role in ensuring the genuine empowerment of local bodies.