PAISA for Panchayats - Tracking Fiscal Devolution toLocal Goverments: A case study from Kolar district, Karnataka

The PAISA for Panchayats research project extends AI’s PAISA methodology to track fund flows and implementations processes at the Panchayat level. By focusing on understanding the state of fiscal devolution to rural local governments, this paper answers 2 key questions - What are the overall trends in fiscal devolution to Panchayati Raj Institutions (PRI) in Karnataka? How much money do Gram Panchayats actually receive? The study principally concludes that in spite of the state’s efforts, the intergovernmental fiscal transfer system in Karnataka is neither designed nor operationalised to fulfil the state’s vision of effective devolution to the panchayats. The report's analysis and recommendations offer practical solutions backed by evidence and driven by data, for all relevant stakeholders to engage in.