Fiscal Decentralization to Rural Governments in India

 A report on Fiscal Decentralization to Rural Governments in India, which includes case studies on Kerala and Karnataka was presented a recent conference on ‘Fiscal Decentralization to Rural Governments in India’ held in New Delhi. The Conference was jointly organized by the National Institute of Public Finance and Policy (NIPFP)  and the World Bank. You can download the report in adobe pdf format:

Â

 Contents | Summary | Karnataka | Kerala | Appendices

The worldwide trend towards decentralization has been accompanied by animated discussions about its benefits and costs. Perceived benefits range from better service delivery to popular involvement in governance to revenue mobilization. The perceived costs include reduced central ability to implement macroeconomic stabilization programs and efficiency losses because of poor local capacity. Regardless of possible costs, most countries have placed the strengthening of local governments – or decentralization – on their development policy agenda.

The Conference participants, who included Government and state Government officials, academics and local and international experts, discussed and reflected on how far action to endow local governments with significant taxing powers and increased expenditure autonomy has taken place.