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An economic analysis of public expenditure in municipalities and Panchayats of Haryana

By: Goel M.M. and Garg, Ishu.
Material type: materialTypeLabelBookPublisher: Nagarlok: Quarterly Journal of Urban Affairs Description: 53(1), Mar, 2021: p.16-37.Subject(s): Municipalities, Panchayats, Canons of public expenditure by Ambedkar, Street smart model In: Nagarlok: Quarterly Journal of Urban AffairsSummary: We are required to understand, analyse and interpret the public expenditure on Municipalities and Panchayats in India including Haryana as local governments have an important place in the age of fiscal federalism. The study reveals that public expenditure on Municipalities and Panchayats in Haryana has increased at an appreciable Compound Annual Growth Rate (CAGR) of 15.37 per cent for the period 2011-12 to 2020-21. It has been found that own resources of Municipalities and Panchayats are not sufficient to meet their expenditure requirements. Also, for some years, Municipalities and Panchayats have not utilised their entire resources. The delays involved in the provision of grants and other transfers towards Municipalities and Panchayats must be prevented. We can be hopeful for the things to take shape in the real sense by understanding and adopting the canons of public expenditure advocated by Dr B.R. Ambedkar that every Government should spend the resources garnered from the public not only according to rules, laws and regulations but should also see that ‘faithfulness, wisdom and economy’ are adhered to in the acts of expenditure by the Government of Haryana including Municipalities and Panchayats. To improve the functioning of Municipalities and Panchayats, we need manpower and elected representatives to be street SMART (Simple, Moral, Action Oriented, Responsive and Transparent).We have to adopt a sustainable fiscal path including judicious expenditure by keeping in mind the receipts that fall in the domain of needonomics (economics of needs). –Reproduced
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Articles Articles Indian Institute of Public Administration
53(1), Mar, 2021: p.16-37 Available AR125343

We are required to understand, analyse and interpret the public expenditure on Municipalities and Panchayats in India including Haryana as local governments have an important place in the age of fiscal federalism. The study reveals that public expenditure on Municipalities and Panchayats in Haryana has increased at an appreciable Compound Annual Growth Rate (CAGR) of 15.37 per cent for the period 2011-12 to 2020-21. It has been found that own resources of Municipalities and Panchayats are not sufficient to meet their expenditure requirements. Also, for some years, Municipalities and Panchayats have not utilised their entire resources. The delays involved in the provision of grants and other transfers towards Municipalities and Panchayats must be prevented. We can be hopeful for the things to take shape in the real sense by understanding and adopting the canons of public expenditure advocated by Dr B.R. Ambedkar that every Government should spend the resources garnered from the public not only according to rules, laws and regulations but should also see that ‘faithfulness, wisdom and economy’ are adhered to in the acts of expenditure by the Government of Haryana including Municipalities and Panchayats. To improve the functioning of Municipalities and Panchayats, we need manpower and elected representatives to be street SMART (Simple, Moral, Action Oriented, Responsive and Transparent).We have to adopt a sustainable fiscal path including judicious expenditure by keeping in mind the receipts that fall in the domain of needonomics (economics of needs). –Reproduced

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