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Social and Behavioral Sciences Commons

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City University of New York (CUNY)

2014

Decentralization

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Fiscal Decentralization: Does The Source Of Revenue Matter?, Pallavi Jain Govil Feb 2014

Fiscal Decentralization: Does The Source Of Revenue Matter?, Pallavi Jain Govil

Dissertations, Theses, and Capstone Projects

Fiscal Decentralization: does the Source of Revenue Matter?

Evidence from Rural India

Pallavi Jain Govil

Adviser: Professor Timothy J. Goodspeed

Is the pattern of expenditures of village governments related to their sources of revenue? Do village governments use own-source revenues more efficiently than transfer grants to provide public services to their constituents?

This paper begins with the premise that local governments are more participative, more acceptable, and more accountable and hence, deliver better. I use a policy change introduced in 1997 in province of Madhya Pradesh in India, whereby the power to collect royalty and lease rents on minor mineral …