App Logo

No.1 PSC Learning App

1M+ Downloads
Kerala has allocated a dedicated percentage of its state budget to local self-governments since:

A1986

B1991

C1996

D2001

Answer:

C. 1996

Read Explanation:

Decentralized Planning Process followed in Kerala:

After the 73rd and 74th Amendments, Kerala’s decentralized planning began with the People’s Plan Campaign and expanded with institutional support across various levels, particularly during the 9th Five-Year Plan (1995-2000). Key developments included:

  1. Transfer of Powers (1995-2000):

  • Local governments received authority over various functions, institutions, and staff from state departments.

  • Transferred staff were made accountable to both Panchayati Raj Institutions (PRIs) and their original departments for implementing state and local plans.

  1. Dedicated Budget for Local Self-Governments (since 1996):

  • A separate budget for Local Self Governments (LSGs) was introduced in 1996, alongside a formula for allocating plan funds (grants-in-aid) among LSGs.

  1. Plan Fund Allocation (1996):

  • Decision to devolve 35-40% of state plan funds to local governments in July 1996.

  • Allocation breakdown: at least 30% for productive sectors, up to 30% for infrastructure, and at least 10% for women’s development programs.

  1. People’s Plan Campaign (1996):

  • Launched in August 1996, this campaign mobilized public participation and awareness, with support from organizations like Kerala Sasthra Sahitya Parishad (KSSP).

  • Linked with institution-building at various government levels.

  1. Restructuring of Panchayat and Municipality Acts (1999):

  • Kerala Panchayat Raj Act and Kerala Municipality Act were restructured based on the Sen Committee (Committee on Decentralization of Powers) recommendations.

  1. State Finance Commission Reports:

  • First Report (1996) and Second Report (2001) reviewed the financial status of LSGs, providing recommendations to enhance financial governance and self-reliance at the local level.


Related Questions:

Which government initiative focuses on providing affordable credit to women entrepreneurs and self-help groups?
Which Article of the Constitution was inserted by the 73rd Amendment?
The idea of democratic decentralization in rural areas was first recommended by which of the following committees?
Which of the following best describes the principle of subsidiarity in democratic decentralization?
The Indian Village Service (IVS), founded in 1945, aimed to: