LOCAL GOVERNMENT BUDGETS: Towards A Reliable and Rational Financial Reporting System

Abstract

A reliable and time series financial reporting is an essential prerequisite for accountability, fiscal management, research, proper monitoring, public scrutiny and policy formulation. In India budget documents at the Union and state levels supply regular and consistent fiscal data flow that has stood the test of times. The purpose of this paper is to empirically verify the cross–section data of budget, revised budget and accounts of local government budget on the basis of illustrative case studies of selected urban and rural local governments in Kerala. The study shows that the budgeting and accounting system in Kerala is in deep disarray and calls for remedial action. Some suggestions for improving the situation are also given.