Assam Chief Minister Dr. Himanta Biswa Sarma hinting at the Central Government bringing the 125th Constitution amendment bill in the coming Union Budget session has triggered fresh hopes for autonomous councils under the Sixth Schedule in the Northeast region to get more powers. Apart from strengthening the legislative, judicial, and executive power of these councils, the bill, pending in the Rajya Sabha since 2019, also seeks to empower the councils to directly receive funds from the Central Government. Ensuring more financial accountability of the autonomous councils for every single rupee they receive, either directly or routed through the state government, is crucial for the judicious utilisation of funds meant for tribal area development. Chiefs of ten Sixth Schedule Autonomous Councils in the region—three in Assam, three in Meghalaya, three in Mizoram, and one in Tripura—have been impressing upon the central government to pass the bill to pave the way for strengthening the councils. The bill seeks to amend Article 280 of the Constitution of India to enable the Finance Commission to recommend measures needed to augment the Consolidated Fund of these four states, which will eventually supplement the resources of Sixth Schedule Autonomous Councils, Village Councils, and Municipal Councils. These councils have been demanding direct funding from the central government, alleging that they are not getting adequate funds from their respective state governments. The bill was referred to the Parliamentary Standing Committee on Home Affairs, and the committee submitted its report in 2020. The Ministry of Home Affairs had apprised the committee that the most significant impact of this constitutional amendment will be in the form of augmentation of financial resources and administrative powers of these autonomous councils and will substantially enhance funds available to local government institutions for undertaking development work in tribal areas. The parliamentary panel, however, stated in its recommendations that “direct funding of ADCs (Autonomous District Councils) by the centre will not only be against the existing constitutional scheme but also would unnecessarily affect the relations of ADCs vis-à-vis state governments adversely. It insisted that the very purpose of amending Article 280 of the Constitution is to make an institutional provision for augmenting the resources of ADCs through the State Finance Commission. Which, it said, is in line with the 73rd and 74th Constitution Amendment Acts for Panchayats and Municipalities. The committee, however, acknowledged the problem that the shortage of funds in autonomous councils is hampering the process of development in the region and strongly felt that the State Finance Commission should earmark funds for autonomous councils while distributing financial resources between the state and the district councils. Besides, states should also provide budgetary allocation and timely release of funds to the ADCs for the implementation of socio-economic developmental plans, it said. A key recommendation by the panel that strengthens the cause of passing the constitutional amendment is that various agreements signed with the Autonomous District/Territorial Councils of Assam and Meghalaya need to be honoured, as reviewing them may cause erosion of confidence between the centre and these states. Inadequate representation of women in the autonomous councils is a critical gap that is expected to be removed when the bill is taken up for discussion in the parliament for passing. Lack of women’s representation deprives women living in autonomous council areas in Assam of political representation and empowerment when the reservation of 50% of seats for women in Panchayati Raj Institutions in Assam has helped women in these areas to play a crucial role in the development process and strengthen grassroots democracy through equal participation of men and women in local self-governance. Ironically, tribal women were at the forefront of various mass movements in the region that earned the community autonomy following the signing of a memorandum of settlements with the central government and respective state governments. Augmenting executive and administrative powers of the autonomous councils must come with building capacities of the councils to rationally utilise the additional powers to improve governance. Without ensuring elected bodies at the village level, strengthening grassroots democracy will remain a far cry. Robust and dynamic governance demands the active participation of the people at the grassroots in the planning process, and only elected bodies of villagers can ensure a democratic process. The 15th Finance Commission made it mandatory for all panchayat bodies to get their accounts audited for the preceding two years and also make the audit report public to be eligible to avail themselves of grants awarded by the finance commission. Allegations of irregularities and corruption in the utilisation of funds released to autonomous councils call for streamlining their financial reporting system and bringing more transparency to fund use by making public the audit report. The taxpayers have the right to know how their contributions have been utilised in improving governance and service delivery. Providing more powers to the Sixth Schedule council must come with a strong audit mechanism and transparency in fund use.