Local Bodies Urged To Float Bonds

Dandavate, in an interview, said decentralisation does not mean mere transfer of resources from the Centre to the states and to the local bodies. We propose generation of financial resources at the lower level too. For this purpose, there can be mopping up of tax and non-tax revenues, for instance, through taxation on properties on the Andhra model and also through additional revenues for local bodies through entertainment tax and professional tax as in Kerala.

The voluntary organisations can also contribute to resource mobilisation in a small way through voluntary labour.

The transfer of several centrally-sponsored projects to the states can also be an additional source of revenue, Dandavate said.

 

He said some experts have been questioning the relevance of planning process and the need for the Planning Commission, in view of the great emphasis being placed on economic reforms. He said this postulate was erroneous. At present, the economy has certain distinctive features and constraints. Inadequate capital, low level of technology and large unemployment, with almost 40 per cent of the population living below the poverty line. Under these circumstances, the Indian economy is bound to have three sectors