The study attempts to review the existing structure of different sources of finance for Grama Panchayats (GPs) in Kerala and analyze the effectiveness of such fund mobilization. It also looks into the problems associated with revenue mobilization and suggests how to improve its effectiveness. Five sample GPs namely Arakuzha, Edathala, Ezhikkara, Kalady, and Thiruvaniyoor in Ernakulam district were selected. The study suggested the need for strengthening the potentiality of GPs in generating own revenue. Arranging collection campaign program including online remittance, increasing the non-tax revenue and revenue through ‘other items’, innovating agency functions coupled with independent activities etc are the methods suggested for improving the effectiveness of fund mobilization by GPs.
Click here to read the Working Paper Local Finance in Kerala: A Study of Five Grama Panchayats in Ernakulam District
Dr Martin Patrick is Chief Economist at CPPR. He holds a PhD in Applied Economics from the Cochin University of Science and Technology (CUSAT), Kochi and also had a post-doctoral training at Tilburg University, Netherlands. Presently, he is a Visiting Fellow at Indian Maritime Institute, and Xavier Institute of Management and Entrepreneurship, Ernakulam.