Relationsm of local government has for long recognized as an integral part of the Democratic life of a Country though its functioning in practice has been a matter of debate and dispute. People's welfare depends on the efficient functioning of local bodies. The need for local government is not only theoretical but is also the means of effectively providing certain services which cannot be done by the central government. Since the time of John Stuart Mill local government has been justified as an integral part of democratic government and the values of liberty, equality and fraternity are consider to be provided by local government. But in modern Society Industrialization and urbanization have put increasing pressures on local authorities, which are then considered inadequate both in Domestic and Efficiency terms. As a result central government is taking away more and more functions from local authorities and vesting them with special Purpose agencies.
The general impact of economic planning has been to promote centralization at the expense of citizen access and participation resulting in increased central control, reduced autonomy of local government and remoteness of the government from the citizens. There remains a need, nevertheless, for a Review of intergovernmental Relations and decentralization in decision making. This book is the outcome of painstaking Research of The Author on Finance and Local Self Government, depicting the Indian experience.