Fiscal decentralization and the income expenditure pattern of urban local bodies a study of Haryana

Abstract

Before the enactment of the 74th Constitutional Amendment Act (1992) of the constitution, the sources of revenue reserved for Urban Local Bodies, were only for providing basic community services and they were not empowered for development purposes. 74th CAA was a landmark step towards the empowerment of Urban Local Bodies. The present study is an attempt to study the financing pattern of Urban Local Bodies in Haryana. The main motive of the study is to study the effects of fiscal decentralization measures (74th CAA, 1992) up on the financing pattern of ULBs in Haryana. The present study is organized in seven chapters. In Chapter 1 conceptual and theoretical framework of the study is described along with statement of the problem and research questions, review of existing literature related with the study, objectives, hypotheses and methodology of the present study. Chapter 2 tries to review the finances of Urban Local Bodies of Haryana state. Chapter 3 identifies the determinants of tax revenue and expenditure of Urban Local Bodies in Haryana using regression approach. Chapter 4 measures the tax efforts of Urban Local Bodies in Haryana using multiple regression approach. Chapter 5 estimates the elasticity and buoyancy of total municipal tax revenue and individual taxes of Urban Local Bodies using OLS method. Chapter 6 tries to suggest measures for augmenting the revenue sources of Urban Local Bodies in Haryana. Chapter 7 concludes the study by summarizing the key findings of the study, policy implications, chief contribution of the study and directions for future research work. newline