Decentralized Multilevel Planning Principles and Practice (Asian and African Experiences)

Rapid urbanisation and its challenges

Rapid urbanisation in its trail brings a host of problems such as housing for living, provision of water supply, health services and other social amenities. These amenities require huge funds. Most municipal administrations are not strong enough to carry out these functions.

Financial issues faced by local governments

The problem of financing the Local Government has been heightened by the increase in prices, heavy cost of meeting the expenditure on establishment and on development activities. Added to this the inefficiency in financial management has increased the magnitude of the problem.

Need for a regulated financial system

It is imperative that a well regulated financial system should be devised to properly harness the source of revenue, regulate proper assessment and collection of such revenue, exercise adequate financial control, both internal and external, in regulating the expenditure by suitable budgeting methods, and control and enforce a system of regular and effective audit and ensure accountability of those local bodies.

Analysis by Doctor Gokulanand Dash

Doctor Gokulanand Dash deserves praise discussing in a most competent manner the problems which urban local governments in India encounter. This he has done by taking up a case study of urban local bodies in Orissa. The findings of his research hold valid not only for India but also for the Third World countries generally.

Conclusion on the core problem

Doctor Dash comes to the conclusion that the real problem of the urban local bodies is not poor finances but weak financial administration.