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A call for devolution of power to local government, capacity strengthening, decentralised planning and transparency and accountability in the Indian states of Bihar and Odisha.

TitleCentral and State Finance Commission grants to Panchaya Raj Institutions (PRIs) : implications for financing of rural WATSAN
Publication TypeWorking Paper
Year of Publication2020
AuthorsKhan, JA
Secondary TitleDecentralised Public Finance for WASH: Policy and Practice Learnings
Pagination22 p. : 4 boxes, 2 fig., 8 tab.
Date Published07/2020
PublisherCentre for Budget and Governance Accountability (CBGA), IRC and WaterAid India
Place PublishedNew Delhi, India
Publication LanguageEnglish

This discussion paper looks into the implementation and key recommendations of the Central Finance Commissions (CFCs) and State Finance Commissions (SFCs) on financing rural water supply and sanitation (WATSAN) in the Indian states of Bihar and Odisha. Section I covers the introduction, objectives, scope and methodology, while Section II captures highlights including the 14th CFC and latest SFCs relevant for financing rural WATSAN. Section III presents the flow of grants to Panchayat Raj Institutions (PRIs) PRIs in recent years. The implications for financing rural WATSAN with regard to the 15th CFC's recommendations for financial year (FY) 2020-21 is discussed in Section IV and finally Section V, lays out the concluding observations and policy implications of CFC and SFC Grants to PRIs and its impact on rural WATSAN, with regards to devolution, capacity strengthening, decentralised planning and transparency and accountability.

This paper is part of a series on "Decentralised Public Finance for WASH: Policy and Practice Learnings", which is based on two core projects: Watershed - Capacity Building Support for Civil Society Organisations to Leverage Water and Sanitation Programmes in Bihar and Odisha supported by IRC and Tracking and Analysing Budget Allocations and Utilisation for WASH by Rural Local Bodies, supported by WaterAid India, using the Life Cycle Cost Approach covering two districts each from both the States namely Gaya and Samastipur from Bihar and Nuapada and Ganjam from Odisha.


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Citation Key87130
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