This thesis investigates the impact of fiscal decentralization on socioeconomic development of Punjab at district level using panel data of 36 districts over the period 2010-11, 2012-13 and 2014-15. The fixed effect model is used to quantify the impact of fiscal decentralization on socioeconomic development. Fiscal decentralization is defined as ratio of district expenditure to total provincial expenditure. Per capita income and multidimensional poverty index are used to quantify the socioeconomic development. The empirical analysis has shown that fiscal decentralization has a significant impact on per capita income in Punjab implying that fiscal decentralization leads to economic development. The empirical analysis has also shown that fiscal decentralization has a negative and significant impact on poverty. The disaggregated analysis has revealed that education and health expenditure have significant relation with socioeconomic development. In essence, it can be concluded that fiscal decentralization may lead to socioeconomic development directly by inducing socioeconomic efficiency or by reducing poverty at district level through local government systems in Punjab. Supervisor:- Dr. Nasir Iqbal