Question

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

• A. 1986
• B. 1991
• C. 1996
• D. 2001

Answer 1

Answer:

C. 1996

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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.