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Fiscal Decentralization to Rural Local Governments in India: A Case Study of West Bengal State

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  • Roy Bahl
  • Geeta Sethi
  • Sally Wallace

Abstract

Rural local governments in India provide essential services to over 70 percent of the national population. Yet, little is known about the efficacy of the financing system that supports these local governments, nor is there a fiscal information system that will allow a tracking of rural local government expenditures and revenues. In this article, we describe the role of rural local governments in India's; federal system, and use a database, newly gathered for West Bengal State, to present an analysis of rural local government financing patterns. We find that expenditures are significantly higher in less populated and more backward gram panchayats. At the margin, however, higher rates of literacy also are associated with higher levels of spending, suggesting an education effect. Copyright 2010, Oxford University Press.

Suggested Citation

  • Roy Bahl & Geeta Sethi & Sally Wallace, 2010. "Fiscal Decentralization to Rural Local Governments in India: A Case Study of West Bengal State," Publius: The Journal of Federalism, CSF Associates Inc., vol. 40(2), pages 312-331, Spring.
    • Handle: RePEc:oup:publus:v:40:y:2010:i:2:p:312-331
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    File URL: http://hdl.handle.net/10.1093/publius/pjp047
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    Cited by:

    1. Clement, Floriane & Ishaq, Saba & Samad, Madar & Acharya, N. Sreedhar & Radha, A. Venkata & Haileslassie, Amare & Blümmel, Michael & Dey, Amitav & Khan, M.A. & Shindey, D.N. & Mit, Rajesh, 2010. "Improving water productivity, reducing poverty and enhancing equity in mixed crop-livestock systems in the Indo-Gangetic Basin," IWMI Reports 212431, International Water Management Institute.
    2. Soumyadip Chattopadhyay & Maumita Das, 2018. "Urban Service Delivery in West Bengal: Current Scenario and New Challenges," Journal of Infrastructure Development, India Development Foundation, vol. 10(1-2), pages 18-36, June.
    3. Clement, Floriane & Ishaq, Saba & Samad, Madar & Acharya, N. Sreedhar & Radha, A. Venkata & Haileslassie, A. & Blummel, M. & Dey, A. & Khan, M. A. & Shindey, D. N. & Mit, R., 2010. "Improving water productivity, reducing poverty and enhancing equity in mixed crop-livestock systems in the Indo-Gangetic Basin: CPWF project report 68," IWMI Research Reports H043549, International Water Management Institute.

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