Issues in Local Government Reform

M. Govinda Rao and Nirvikar Singh

in The Political Economy of Federalism in India

Published in print November 2006 | ISBN: 9780195686937
Published online October 2012 | e-ISBN: 9780199080571 | DOI:

Series: Oxford India Paperbacks

Issues in Local Government Reform

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This chapter examines ongoing local government reform in India from the instrumental perspective of improving the provision of local public goods. It analyses attempts to decentralise governance below the state level and identifies some important problems in both design and implementation of the system. It categorizes the reforms into expenditure responsibilities, revenue authority, and institutions and incentives and suggests that the most critical aspect of local government reform is in the area of institutions and incentives. It concludes that the reform of local government in India, while often being pushed by groups opposed to liberalization, is in fact complementary and very close in spirit to the overall reform of the Indian economy.

Keywords: local government reform; India; local public goods; fiscal decentralisation; expenditure responsibilities; revenue authority; institutional reform; accountability; liberalization

Chapter.  19797 words.  Illustrated.

Subjects: Economic Development and Growth

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