Regional Backwardness and Public Spending on Development of Rural Physical and Social Infrastructure in Karnataka

Abstract

The word infrastructure has been derived from the different two independent words ‘Infra’ means which lies beneath or comes before and similarly ‘Structure’ which means well planned or organised. Infrastructure could serve as a true engine of growth and can provide the much needed momentum to the economic in the time of economic slowdown. The Indian economy has grown at an average 8 per cent in the recent past years, and a 10 per cent annual GDP growth is difficult to achieve unless the county improves its rural infrastructure. If India is to sustain its high growth much of the required investment is of a public goods nature and thus most of the infrastructure investments must come from public sources. Karnataka is a pioneer State in the transformation of the ‘Gram Swaraj’ concept into reality and enacting the PRI Act to bring the practice of decentralised administration and development in line with the 73rd Amendment to the Constitution. A three-tier structure was created with the Zilla Panchayath at district, Taluka Panchayath at taluks and Gram Panchayath at the village level. 73rd amendment of constitution gives more power to Gram Panchayath in context to local self governance. A high power committee for the redressal of regional imbalance was constituted by the government in 2000. It identified 35 indicators encompassing agriculture, industry, and social-economic infrastructure and population characteristics to index of development. Gram Swaraj Project implemented in Karnataka State from the year 2006–2007 was based on Prof. Nanjundappa committee to address the issue of regional imbalances in his report. With this background the State Government has intend to strengthening the 1,341 Gram Panchayats comes under ‘most backward taluks’ with the collaboration of World bank aid.