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Local governments in Kerala enjoy very stable sources of revenue compared to their counterparts in the country. Even before the 73rd and 74th constitutional amendments in 1994, the situation was true. The sources of income earmarked for local governments, prior to the amendments, were meant for providing civic services and welfare functions, but not for development functions. The scenario had changed after the constitutional amendments and enactment of conformity acts in the State in 1994. Significant portion of development functions of the State were devolved to local governments. In 1996, the State government earmarked one-third of its development plan size as devolved funds for bottom-up planning in development sectors transferred to local governments. This was followed by many measures to support the financial health of local governments in the State.The tiny State of Kerala, lying in the south-west corner of Indian Union, emerges as a classic paradigm in fiscal decentralization to local governments.〔( See the World bank document on Rural local finance in Kerala )〕 The categories of sources of finance〔''Local government finance in Kerala'' by K Rajasekharan. In M R Biju Ed, ''Financial Management of Panchayati Raj System'', New Delhi, Kanishka Publishers, 2008 P 146-176〕 are as described below.〔erala Panchayat Raj Act 1994 & Kerala Municipality Act 1994: Sections on finance〕 ==Tax revenue of local governments== Taxation is the most appropriate way to fund local government services. Own local taxes make the revenue base of lower tier local governments potentially autonomous and strong. Own taxes are directly demanded and collected by Village Panchayats, Municipalities and Corporations which are remaining very close to the people. District and Block Panchayats do not have the authority to collect taxes and have no consequent expenditure autonomy as that of others. They more or less function as spending agents of higher-level governments. A three tier fragmented tax system in a federal system of governance has many inherent disadvantages. Decentralization of taxing powers hence may not fully match the decentralized expenditure, arising out of many institutions transferred as part of the functional devolution, in the new local government system. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Local Government Finance in Kerala」の詳細全文を読む スポンサード リンク
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