7. Budgeting Techniques of Rural Local Bodies in Karnataka

Participatory budgeting at the local government level has gained the momentum in the 1990s. It was very successful in several countries like Brazil and Kenya. This paper examines the budgeting process at local government level in the State of Karnataka and also discusses the provisions under Karnataka Panchayat Raj Rules, 2006. Various best practices regarding Panchayat budgeting and its execution and lessons to be learned from those practices have been clearly examined in the study. This paper emphasizes that the State Government should insist on conducting special Grama Sabha to discuss the budget issues. Expenditure to be incurred should reflect the priorities of the people that are decided in the Grama Sabha.