Substantial Devolution To Local Govts Prior To SFCs
Kerala’s decentralisation shows the provision of substantial untied funds for local prioritisation and local resource allocation to identified priority areas. This was not recommended by any State Finance Commission but was a policy decision taken by the State Government at the beginning of the 9th Five Year Plan.While the State has been able to go beyond what is strictly essential (as per SFC reports) and has been able to consolidate Centrally Sponsored schemes in some cases leading to welcome increase in the untied grants recently, there has unfortunately a drop in the statutory grants which is wholly unwelcome.
Also, it has been noticed that restriction of actual flows to PRIs get aggravated every time there is a glitch in the state finances. Thus, even when credited to their Treasury accounts, the panchayats are not able to use the funds because the finance department will not release them. The performance audit shows up some lacunae which have to mostly do with the outmoded accounting and record keeping.
However all this should not detract from the many positive features in Kerala case such as transparency especially in beneficiary selection, RTI, social audit which need to be further encouraged, strengthened and emulated by other states.
Read more about this topic: State Finance Commission (Kerala)
Famous quotes containing the words substantial, local and/or prior:
“In this nation I see tens of millions of its citizens, a substantial part of its whole population, who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life. I see one third of a nation ill-housed, ill-clad, ill-nourished. The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little.”
—Franklin D. Roosevelt (1882–1945)
“In everyone’s youthful dreams, philosophy is still vaguely but inseparably, and with singular truth, associated with the East, nor do after years discover its local habitation in the Western world. In comparison with the philosophers of the East, we may say that modern Europe has yet given birth to none.”
—Henry David Thoreau (1817–1862)
“Less smooth than her Skin and less white than her breast
Was this pollisht stone beneath which she lyes prest
Stop, Reader, and Sigh while thou thinkst on the rest
With a just trim of Virtue her Soul was endu’d
Not affectedly Pious nor secretly lewd,
She cut even between the Cocquet and the Prude.”
—Matthew Prior (1664–1721)