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Financial Decentralization, Panchayati Raj Institutions (PRIs) and Rural Development in India

Abstract:

There are many countries of the world which have a federal form of government. Developed countries like, USA, Canada, Australia and Switzerland and developing countries like India, Pakistan, Malaya, Nigeria and West Indies have also adopted some forms of federalism suited to their own requirement. In a federal form of government system there is a Union government for the whole country, and different governments for each part of region of the country. The distribution of powers, functions and finances between Union or Central government and the state or regional governments differ from country to country. The principle on which the distribution of power is made is that those matters which have importance for the country as a whole are entrusted to the communications, etc. and those matters which are considered to be of local significance, are assigned to the units, e.g. education, public health, agriculture, etc.


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