The focus on states being the drivers for the next stage of reforms has been echoed over the last decade. States now have a proactive role to play and take responsibility in the next set of changes in areas of relevant domains given that they are largely under their jurisdictional purview. Additionally, state finances are crucial for India’s growth story as state governments are responsible for a considerable share of government spending and borrowing. NCAER will prepare state-level decks/reports providing a summary of the macro and fiscal landscape of each state and will have sections on – demography; economic growth; socio-economic indicators; public finances; state fiscal rules; and some supplementary information. The underlying data will be updated annually, and users will have the flexibility to download customisable graphs and charts that give data on specific variables across states.
The National Land Records Modernisation Programme (NLRMP) was launched in 2008 as a centrally sponsored scheme, relaunched as the Digital India Land Records Modernisation Programme in 2016 with 100% centrally funded scheme. The scheme, now extended till 2025-26, aims to develop a modern, comprehensive and transparent land record management system with the integration of all relevant data bases. Since huge amount have been invested, it become important to anlayse how well the digitized land records reflect the ground realities and what kind of challenges land owners are facing in accessing the digitised copies of their land records. In this context, NCAER has been entrusted this study, with support from DoLR, Ministry of Rural Development, GOI.
The scope of the study includes: a) identifying the gaps in terms of progress of digitization of textual/ spatial records, registration process and integration between these components and gaps in systems talking to each other; identifying the extent to which RORs and Maps are being updated; identifying the status of mutation / subdivisions; and understanding the status of process of rectification in digitized records. The study includes survey of land owners in 4 States/UTs’ in India i.e. Chandigarh, Delhi, Punjab and Rajasthan. Additionally, responses were taken from patwaris and the revenue departments officials of the respective States/ UTs. The findings are expected to help in nuancing the policies and implementation processes that could help in addressing the challenges and gaps towards achieving the desired outcomes of the programme by 2025-26.
The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), launched in 2015-16, aims to enhance water use efficiency (WUE) through modern tools such as the Supervisory Control and Data Acquisition (SCADA) system, micro-irrigation, and pipe distribution networks. The initiative seeks to reduce water allocation for agriculture from 70% to 50% while ensuring better on-farm water access, expanding irrigated areas, improving water efficiency, and promoting sustainable water conservation practices.
As part of this effort, the Ministry of Jal Shakti and the Central Water Commission (CWC) have commissioned the National Council for Applied Economic Research (NCAER) to assess the indirect and intangible benefits of major irrigation projects. These studies aim to include these benefits in evaluating the techno-economic viability of irrigation projects, focusing on both national and location-specific advantages.
Indirect/Intangible Benefits:
1. National Benefits:
- Increased National Resources: Irrigation supports resource conservation, enhances land productivity, and enables the production of nutritionally vital foods (e.g., fruits, vegetables, and dairy products).
- Increased Stability: Irrigated agriculture reduces vulnerability to droughts, ensuring crop stability and stable income for farmers.
2. Location-Specific Benefits:
- Benefits to farmers, traders, property owners, and suppliers in project command areas.
Overall, the PMKSY integrates tangible and intangible benefits to provide a broader understanding of irrigation projects’ socio-economic and environmental impacts.
Action Research & Research Studies wing of the Ministry of Panchayati Raj (MoPR) has awarded the study to the National Council of Applied Economic Research (NCAER) to assess the impact of Central Finance Commission’s (CFC) grant to the Rural Local Bodies (RLBs). The idea of fiscal devolution in India revolves around transferring financial resources from the central government to states and subsequently to local governments, with the goal of empowering grassroots-level governance to address development needs effectively. This process has been a cornerstone of India’s federal structure, aiming to ensure equitable resource distribution across diverse regions.
The Central Finance Commission (CFC) plays a critical role in India’s fiscal federalism by recommending the distribution of resources between the central and state governments, as well as allocations to Panchayati Raj Institutions (PRIs).
When analysing the impact of CFC grants at the Panchayat level, it is essential to examine how these funds affect various sectors critical to rural development and governance.
Objectives
- To study the impact of Central Finance Commission (CFC) grants at the Panchayat levels across different sectors
- To examine/ascertain if CFC funds are being utilized by Panchayats have resulted in assets for OSR generations
- To examine the current state of assets created in Panchayat from CFCs and the state of their operations and maintenance
- To highlight the progress of States on compliance of recommendations made by the 15th Finance Commission
- To assess the effectiveness of the CFC grants with other schemes in the GPs such as MGNREGA, NRLM, JJM, SBN (G)), if the effective utilization of CFC funds is linked.
- To identify major problems / challenges faced by RLBs and make recommendations for the considerations of the 16th Finance Commission
- To analyse effectiveness of attaching conditionalities to grants (tied grants).
NCAER is working closely with the Finance Commission as a knowledge partner.
The specific issues that we are helping the 16th Finance Commission with include –
(i) State-Level Diagnostic Reports and Policy Briefs;
(ii) Analysis of States’ Fiscal Situation and Debt Sustainability;
(iii) State-Level Growth: Possibilities of Convergence Across States;
(iv) Analyzing the features and efficacy of Horizontal Devolution Formulae proposed by various Finance Commissions; and,
(v) Medium Term Framework and new Fiscal rules for the Union and the states.
