Revenue Potential of Panchayats in Kerala

How much more taxes would it be possible for Panchayats in Kerala to collect? This question is important in deciding the financial allocations to such local governments. Information regarding this may enable to frame resource allocation rules that provide incentives to local governments to enhance their own resources. This is especially so, if the allocation of `more’ resources from the state government serves indirectly as a disincentive for the LSG to mobilise the available tax resources from the locality. This study carried out in six panchayats of different districts of Kerala provides some indicative insights. [Policy Note No. 5] URL: [http://www.cds.edu/]