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When India's economy faced an unprecedented macroeconomic crisis in 1991, fiscal consolidation constituted a major objective of the policy response. For this purpose, it became necessary to enhance tax and non-tax revenue, curtail current expenditure growth, restructure public sector undertakings, improve fiscal-monetary co-ordination, and deregulate financial system. The need for improvements in budgetary practices led to the enactment of the Fiscal Responsibility and Budget Management Act, 2003, which ushered the Indian economy into an era of fiscal consolidation based on fiscal policy rules. The passage of the Constitution (Seventy-Third Amendment) Act, 1992 marked a watershed in the history of modern India. With this amendment, a uniform structure of panchayats (village councils) emerged throughout the country. Similarly, the passage of the Constitution (Seventy-Fourth Amendment) Act, 1992 was a landmark in the history of municipal administration in India. As a result, panchayats a