Challenges and Reforms in India's Local Governance and Federal Fiscal Relations

India's local governance faces challenges despite constitutional amendments aimed at empowering village and city bodies. State governments often hesitate to devolve powers, delaying local elections and ignoring finance commission recommendations. The 16th Finance Commission's proposal to delink its devolution from state finance commission reports raises concerns about weakening fiscal federalism. Meanwhile, calls for a renewed federal compact emphasize addressing centralization and enhancing state autonomy to improve governance and democratic participation.