India : Fiscal Decentralization to Rural Governments

The objective of this study is to review panchayat finances, identify issues and make recommendations to improve the fiscal decentralization system. Using Kamataka and Kerala as case studies, this report describes the context for rural decentraliza...

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Bibliographic Details
Main Author: World Bank
Format: Other Rural Study
Language:English
en_US
Published: Washington, DC 2013
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2004/01/2874424/india-fiscal-decentralization-rural-governments
http://hdl.handle.net/10986/14674
id okr-10986-14674
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic DECENTRALIZATION IN GOVERNMENT
RURAL COMMUNITIES
EXPENDITURE ASSIGNMENTS
LOCAL GOVERNMENT CAPACITY
BUDGET ADMINISTRATION
INFORMATION SYSTEMS
POLICY MAKING PROCESSES
LOCAL ORGANIZATIONS
FISCAL DECENTRALIZATION
DRINKING WATER CONSUMPTION
PRIMARY EDUCATION
SECONDARY EDUCATION
HEALTH SERVICES
CAPACITY BUILDING
FISCAL FRAMEWORK
LOCAL AUTONOMY ACCOUNTABILITY
ACCOUNTING
ADMINISTRATIVE ARRANGEMENTS
ADMINISTRATIVE AUTONOMY
ASSIGNMENT OF EXPENDITURES
AUTHORITY
BUDGETARY AUTONOMY
CENTRAL GOVERNMENT
CITIES
CONSTITUTION
CONSTITUTIONAL AMENDMENTS
DECENTRALIZATION PROCESS
DECENTRALIZATION SYSTEM
DECISION MAKERS
DECISION-MAKING
DECISION-MAKING POWER
DEVOLUTION
DISTRICTS
EMPLOYMENT
EMPLOYMENT GENERATION
EQUALIZATION
EXECUTION
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE RESPONSIBILITIES
EXTERNALITIES
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT SYSTEMS
FISCAL
FISCAL DECENTRALIZATION
FISCAL INFORMATION
FISCAL PRESSURES
FISCAL PROBLEMS
FISCAL SITUATION
FISCAL YEAR
FISCAL ~~~~~ DECENTRALIZATION
GOVERNMENT FINANCE
GOVERNMENT LEVEL
GOVERNMENT OFFICIALS
GOVERNMENT PROGRAM
GOVERNMENT RESPONSIBILITY
GOVERNMENT REVENUE
GOVERNMENT SPENDING
GOVERNMENTAL ORGANIZATION
GRANT DESIGN
GROSS DOMESTIC PRODUCT
INCOME
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL FISCAL SYSTEM
INTERGOVERNMENTAL SYSTEM
INTERGOVERNMENTAL TRANSFERS
JUDICIARY
LEGISLATION
LOCAL AUTONOMY
LOCAL BODIES
LOCAL FINANCE
LOCAL GOVERNMENT
LOCAL GOVERNMENT EMPLOYEES
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT OFFICIALS
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENT SECTOR
LOCAL GOVERNMENT SPENDING
LOCAL GOVERNMENTS
LOCAL LEVEL
LOCAL OFFICIALS
LOCAL REVENUE
LOCAL SELF-GOVERNMENT
LOCAL TAXES
MANDATES
MINISTRY OF FINANCE
MUNICIPALITIES
NATURAL RESOURCES
OWN SOURCE REVENUE
PANCHAYATS
POLITICIANS
PRODUCTIVITY
PROPERTY TAX BASE
PROPERTY TAXES
PROVISIONS
PUBLIC EXPENDITURES
PUBLIC SERVICES
REVENUE MOBILIZATION
ROADS
STATE EMPLOYEES
STATE FINANCE
STATE GOVERNMENT
STATE GOVERNMENTS
TAX
TAX ADMINISTRATION
TAX LAWS
TAX RATE
TAX REVENUES
TAX SYSTEM
TAXATION
TOTAL EXPENDITURES
URBAN GOVERNMENTS
USER CHARGES
VOTERS
VOTING
WATER SUPPLY
spellingShingle DECENTRALIZATION IN GOVERNMENT
RURAL COMMUNITIES
EXPENDITURE ASSIGNMENTS
LOCAL GOVERNMENT CAPACITY
BUDGET ADMINISTRATION
INFORMATION SYSTEMS
POLICY MAKING PROCESSES
LOCAL ORGANIZATIONS
FISCAL DECENTRALIZATION
DRINKING WATER CONSUMPTION
PRIMARY EDUCATION
SECONDARY EDUCATION
HEALTH SERVICES
CAPACITY BUILDING
FISCAL FRAMEWORK
LOCAL AUTONOMY ACCOUNTABILITY
ACCOUNTING
ADMINISTRATIVE ARRANGEMENTS
ADMINISTRATIVE AUTONOMY
ASSIGNMENT OF EXPENDITURES
AUTHORITY
BUDGETARY AUTONOMY
CENTRAL GOVERNMENT
CITIES
CONSTITUTION
CONSTITUTIONAL AMENDMENTS
DECENTRALIZATION PROCESS
DECENTRALIZATION SYSTEM
DECISION MAKERS
DECISION-MAKING
DECISION-MAKING POWER
DEVOLUTION
DISTRICTS
EMPLOYMENT
EMPLOYMENT GENERATION
EQUALIZATION
EXECUTION
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE RESPONSIBILITIES
EXTERNALITIES
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT SYSTEMS
FISCAL
FISCAL DECENTRALIZATION
FISCAL INFORMATION
FISCAL PRESSURES
FISCAL PROBLEMS
FISCAL SITUATION
FISCAL YEAR
FISCAL ~~~~~ DECENTRALIZATION
GOVERNMENT FINANCE
GOVERNMENT LEVEL
GOVERNMENT OFFICIALS
GOVERNMENT PROGRAM
GOVERNMENT RESPONSIBILITY
GOVERNMENT REVENUE
GOVERNMENT SPENDING
GOVERNMENTAL ORGANIZATION
GRANT DESIGN
GROSS DOMESTIC PRODUCT
INCOME
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL FISCAL SYSTEM
INTERGOVERNMENTAL SYSTEM
INTERGOVERNMENTAL TRANSFERS
JUDICIARY
LEGISLATION
LOCAL AUTONOMY
LOCAL BODIES
LOCAL FINANCE
LOCAL GOVERNMENT
LOCAL GOVERNMENT EMPLOYEES
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT OFFICIALS
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENT SECTOR
LOCAL GOVERNMENT SPENDING
LOCAL GOVERNMENTS
LOCAL LEVEL
LOCAL OFFICIALS
LOCAL REVENUE
LOCAL SELF-GOVERNMENT
LOCAL TAXES
MANDATES
MINISTRY OF FINANCE
MUNICIPALITIES
NATURAL RESOURCES
OWN SOURCE REVENUE
PANCHAYATS
POLITICIANS
PRODUCTIVITY
PROPERTY TAX BASE
PROPERTY TAXES
PROVISIONS
PUBLIC EXPENDITURES
PUBLIC SERVICES
REVENUE MOBILIZATION
ROADS
STATE EMPLOYEES
STATE FINANCE
STATE GOVERNMENT
STATE GOVERNMENTS
TAX
TAX ADMINISTRATION
TAX LAWS
TAX RATE
TAX REVENUES
TAX SYSTEM
TAXATION
TOTAL EXPENDITURES
URBAN GOVERNMENTS
USER CHARGES
VOTERS
VOTING
WATER SUPPLY
World Bank
India : Fiscal Decentralization to Rural Governments
geographic_facet South Asia
India
description The objective of this study is to review panchayat finances, identify issues and make recommendations to improve the fiscal decentralization system. Using Kamataka and Kerala as case studies, this report describes the context for rural decentralization in India, summarizes the current fiscal situation of district, block and village panchayats, identifies the main problems arising from the current practice, and outlines a set of reform options that might better satisfy the objectives of the central and state governments. Kamataka and Kerala were examined because these two states are generally thought to be more advanced than others in implementing rural fiscal decentralization and are therefore relevant for drawing lessons for the rest of India. There is a hierarchical arrangement of center-state-local governance. The 73rd Amendment to the Constitution made India one of the most politically decentralized countries in the developing world. By the Constitution and in practice, local government has an urban and a rural stream. Rural local governments are divided into three levels: district (zilla), block (taluk), and village (gram) panchayats. The design and implementation of the decentralization program are a state government responsibility. However implementation of key aspects of the program is lagging. Districts and blocks have no taxing powers and little expenditure autonomy. Both in Karnataka and Kerala, they more or less function as spending agents of higher-level governments. Gram panchayats are closest to the people, have some independent taxing power, and some discretion in expenditure decisions. Hence they are the primary subjects of this study.
format Economic & Sector Work :: Other Rural Study
author World Bank
author_facet World Bank
author_sort World Bank
title India : Fiscal Decentralization to Rural Governments
title_short India : Fiscal Decentralization to Rural Governments
title_full India : Fiscal Decentralization to Rural Governments
title_fullStr India : Fiscal Decentralization to Rural Governments
title_full_unstemmed India : Fiscal Decentralization to Rural Governments
title_sort india : fiscal decentralization to rural governments
publisher Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/01/2874424/india-fiscal-decentralization-rural-governments
http://hdl.handle.net/10986/14674
_version_ 1764428383067832320
spelling okr-10986-146742021-04-23T14:03:17Z India : Fiscal Decentralization to Rural Governments World Bank DECENTRALIZATION IN GOVERNMENT RURAL COMMUNITIES EXPENDITURE ASSIGNMENTS LOCAL GOVERNMENT CAPACITY BUDGET ADMINISTRATION INFORMATION SYSTEMS POLICY MAKING PROCESSES LOCAL ORGANIZATIONS FISCAL DECENTRALIZATION DRINKING WATER CONSUMPTION PRIMARY EDUCATION SECONDARY EDUCATION HEALTH SERVICES CAPACITY BUILDING FISCAL FRAMEWORK LOCAL AUTONOMY ACCOUNTABILITY ACCOUNTING ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE AUTONOMY ASSIGNMENT OF EXPENDITURES AUTHORITY BUDGETARY AUTONOMY CENTRAL GOVERNMENT CITIES CONSTITUTION CONSTITUTIONAL AMENDMENTS DECENTRALIZATION PROCESS DECENTRALIZATION SYSTEM DECISION MAKERS DECISION-MAKING DECISION-MAKING POWER DEVOLUTION DISTRICTS EMPLOYMENT EMPLOYMENT GENERATION EQUALIZATION EXECUTION EXPENDITURE EXPENDITURE ASSIGNMENTS EXPENDITURE RESPONSIBILITIES EXTERNALITIES FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT SYSTEMS FISCAL FISCAL DECENTRALIZATION FISCAL INFORMATION FISCAL PRESSURES FISCAL PROBLEMS FISCAL SITUATION FISCAL YEAR FISCAL ~~~~~ DECENTRALIZATION GOVERNMENT FINANCE GOVERNMENT LEVEL GOVERNMENT OFFICIALS GOVERNMENT PROGRAM GOVERNMENT RESPONSIBILITY GOVERNMENT REVENUE GOVERNMENT SPENDING GOVERNMENTAL ORGANIZATION GRANT DESIGN GROSS DOMESTIC PRODUCT INCOME INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL FISCAL SYSTEM INTERGOVERNMENTAL SYSTEM INTERGOVERNMENTAL TRANSFERS JUDICIARY LEGISLATION LOCAL AUTONOMY LOCAL BODIES LOCAL FINANCE LOCAL GOVERNMENT LOCAL GOVERNMENT EMPLOYEES LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENT OFFICIALS LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENT SECTOR LOCAL GOVERNMENT SPENDING LOCAL GOVERNMENTS LOCAL LEVEL LOCAL OFFICIALS LOCAL REVENUE LOCAL SELF-GOVERNMENT LOCAL TAXES MANDATES MINISTRY OF FINANCE MUNICIPALITIES NATURAL RESOURCES OWN SOURCE REVENUE PANCHAYATS POLITICIANS PRODUCTIVITY PROPERTY TAX BASE PROPERTY TAXES PROVISIONS PUBLIC EXPENDITURES PUBLIC SERVICES REVENUE MOBILIZATION ROADS STATE EMPLOYEES STATE FINANCE STATE GOVERNMENT STATE GOVERNMENTS TAX TAX ADMINISTRATION TAX LAWS TAX RATE TAX REVENUES TAX SYSTEM TAXATION TOTAL EXPENDITURES URBAN GOVERNMENTS USER CHARGES VOTERS VOTING WATER SUPPLY The objective of this study is to review panchayat finances, identify issues and make recommendations to improve the fiscal decentralization system. Using Kamataka and Kerala as case studies, this report describes the context for rural decentralization in India, summarizes the current fiscal situation of district, block and village panchayats, identifies the main problems arising from the current practice, and outlines a set of reform options that might better satisfy the objectives of the central and state governments. Kamataka and Kerala were examined because these two states are generally thought to be more advanced than others in implementing rural fiscal decentralization and are therefore relevant for drawing lessons for the rest of India. There is a hierarchical arrangement of center-state-local governance. The 73rd Amendment to the Constitution made India one of the most politically decentralized countries in the developing world. By the Constitution and in practice, local government has an urban and a rural stream. Rural local governments are divided into three levels: district (zilla), block (taluk), and village (gram) panchayats. The design and implementation of the decentralization program are a state government responsibility. However implementation of key aspects of the program is lagging. Districts and blocks have no taxing powers and little expenditure autonomy. Both in Karnataka and Kerala, they more or less function as spending agents of higher-level governments. Gram panchayats are closest to the people, have some independent taxing power, and some discretion in expenditure decisions. Hence they are the primary subjects of this study. 2013-07-30T21:41:40Z 2013-07-30T21:41:40Z 2004-01-07 http://documents.worldbank.org/curated/en/2004/01/2874424/india-fiscal-decentralization-rural-governments http://hdl.handle.net/10986/14674 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Rural Study Economic & Sector Work South Asia India