Status of Rural Local Bodies Finance in Tamil Nadu

This study revealed the faulty design of panchayat finance in Tamil nadu. The appearance of decentralization of powers is deceptive. The three articies in this monograph analyses deeply how provision of the constitutions are violated through operationalising the decentralization design. It suggests a new sound local body finance policy and a local body financial management system for Tamil Nadu. Further it recommends that tax reform is need of the hour from the perspective of local bodies eith a view to increase the tax domain of local bodies. It also suggests that the share of local bodies in the resource pool of the centre and state governments has to be enhanced. Finally a data generation system should be in place at the ground for effective and efficient decision and policy making.