"Fiscal Decentralisation in Kerala: Participation and Accountability of Local Self-Governments".

Abstract

In India, fiscal decentralisation is currently emerging as the concept of academic debate and policy interest. The fiscal decentralisation is considered very important and it is necessary in a country or a state for its economic benefits, enhanced political and financial accountability and improved effectiveness. In addition, there are some issues like declined investment in social infrastructures, macro-economic instability and increased horizontal inequities and conflicts. In this study, the fiscal decentralisation in Kerala has been analysed with respect to the participation and accountability of local government. The aim of the research is to investigate in detail about the fiscal decentralisation in Kerala in terms of participation and accountability of local self-governments. Therefore, the main objective of this studies that to analyse the participation and accountability of local government (Gram Panchayats) in fiscal decentralisation in Kerala. This study uses the secondary data for the analysis and do not include the primary data. This study adopts the positivism research approach. It is inferred from the study that the expenditure is more than the revenues in Kerala, which leads to deficit. In addition, there is a gap in the minimum and the maximum allocation of local governments in each district of Kerala. This could be rectified by means of increasing the standards of accountability and participation of local self-governments in Kerala by means of introducing innovative tools of responsibility in Kerala.