Devolution of funds to Local Self Governments (LSGs)

• LSG fiscal devolution = transfer of resources (Central Finance Commission grants, State Finance Commission shares, own revenues) from higher tiers to Panchayats (rural) and Municipalities (urban) to fund 11th/12th Schedule subjects.
• Constitutionally anchored in Articles 280(3)(bb) & 280(3)(c), operationalised by successive Central Finance Commissions (CFCs).
• High-yield UPSC area: intersects federalism, 73rd/74th CAA, fiscal federalism, 16th FC, and grass-roots service delivery.