ORGANIZATION OF DECENTRALIZATION SYSTEM IN INDIA BY TERRITORIAL PRINCIPLE
The author analyses the aspects of decentralization in India, history of its formation, structure and procedure of formation of local self-governments of different level as well as its competence. The article devotes to the questions of correlation between federal bodies and local self-governments, its funding procedures and financial reporting. The Committee for district and metropolitan planning function in a row with panchayats and municipalities. Such Committees consolidate plans on rural development drafted by the panchayats and municipalities. Nevertheless development and reformation of decentralized system of governance in India can be continued. First of all it relates to the structure of panchayats that regulates under the Constitution of India and is considerably inhomogeneous. Thus, the district panchayats have specific features and competence within the district of concerned state, just as competence of panchayats formed at village or intermediate levels is not regulated under legal acts. What’s more there is a three-tier system of local self-governance constituted under legal acts in some states of India just as the other states have a piece of freedom on determination of level and model of decentralization due to the problem of maintenance of balance between technical aspects of local self-governments work and possibility of active participation of people in local self-governments activity on the village and intermediate level. Therefore the author analyses the possible ways of solving such problem.