Local Self Governing Institution and Fiscal Decentralisation in Aizawl District : Implications and Challenges

Abstract

Decentralization involves shifting of fiscal, political and administrative authorityfrom higher to lower level governments. Financial responsibility is a core component of decentralization. If local governments are to carry out decentralized functions effectively, they must possess sufficient fiscal autonomy along with own taxation and borrowing powers as well as a share in the State’s taxes and duties and grants-in-aid from higher levels of government. ‘Fiscal’ connotes government finance, revenue, spending, debt and financial year, etc. Full fiscal decentralization requires political decentralization and to some extent, administrative decentralization.