ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Fiscal decentralisationSubscribe to Fiscal decentralisation

Fiscal Decentralisation and Finances of Gram Panchayats and Municipalities

Based on a sample of 56 gram panchayats and 14 municipalities, it is concluded that the fiscal decentralisation implemented in Kerala is partial. In the case of intergovernmental fiscal transfers through state finance commissions, there has been delayed implementation of SFC reports, rejection of devolution recommendations, implementation of very few recommendations and non-implementation of accepted recommendations indicating a distorted implementation of fiscal decentralisation. B

Strengthening Fiscal Health of Urban Local Bodies

In West Bengal, municipal fiscal indicators have improved, but municipality finances are in a grossly unsatisfactory state. Inter-category fiscal disparities are large. Own source revenue is insufficient to cover revenue expenditure. Therefore, municipalities are dependent on intergovernmental transfers, and their fiscal autonomy is limited. Intergovernmental transfers are equalising in nature. There is an increasing need for adequate resources, especially owing to the decentralisation of urban service delivery, and a need for strengthening the fiscal health of urban local bodies by increasing own source revenue or intergovernmental transfers, by restructuring intergovernmental transfers, or by performing both actions.

Rejection of Kerala’s Fifth State Finance Commission Recommendations

The recent large-scale rejection of the devolution recommendations of the Fifth State Finance Commission by the Kerala government reflects a reversal of past progress, and a move towards fiscal centralisation.

Taxation and Poverty Eradication

Development, Poverty and Fiscal Policy: Decentralisation of Institutions edited by M Govinda Rao; Oxford University Press, New Delhi, 2002; pp xvi+358, Rs 595 .

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