1. Semester: III/IV
2. Number of Credits: 2

Preamble
This course takes a critical look at the currently fashionable ‘decentralization’ and ‘governance’ in the context of the passage of 74th Constitutional Amendment. Municipal governments form the third tier of governance. There are a whole lot of functions that have been assigned to the local governments. There are however some issues that arise in this context. One of the main ones that the student will be expected to study in this course will be the state of finances of the local bodies. The related issue of level of autonomy for sub-national governments within a federal set up will also be discussed. The budgets of select municipal bodies will be discussed in detail from the perspective of – and using economic categories – an economist. The devolution from higher governments and the role of state finance commissions in this context will also be touched upon. The role of civil society, especially in the context of participatory democracy and empowerment of people will also be studied.

Module I: (12 lectures)
The municipal ‘Acts’ – the obligatory and discretionary functions – the tax and non-tax revenues.– the profile of ULBs in Maharashtra: The state of Municipal finance in Maharashtra, Budgetary Analysis and Charters

Module II: (12 lectures)
Decentraliztion – 74th Constitutional Amendment and its critique;  State Finance Commission Reports; Issues in governance; functions and process Re-engineering; capacity building; outcome and performance budgets;  Role of civil society.