Why do State Finance Commissions matter for local government funding in India?

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India’s municipalities and panchayats are expected to handle services people rely on every day, but their ability to do that depends heavily on predictable funding. I’m trying to understand the role of State Finance Commissions in that picture.

How much influence do their recommendations have on the money actually transferred to local bodies? I’d also be interested in how delays in constituting a commission, or in acting on its report, affect local planning and accountability.

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