Reserve Bank Governor Shaktikanta Das on Friday said there is a “great need” to institutionalise State finance commissions and helping the local bodies enhance their revenue generation capacities.
He said fiscally strong states and Centre is the “essence” of Indian federalism and weakness at either end poses a slew of challenges for the country.
“There is a great need to strongly institutionalise the state finance commissions and empower the third tier of governance by enhancing their revenue-generating capacity,” Das said.
He was speaking at the central bank headquarters before the 17th LK Jha Memorial Lecture which was given by 15th Finance Commission chairman NK Singh. Das said local bodies deserve more attention and is an aspect that needs to be looked into.