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Local Government in India by Pardeep Sachdeva

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9

Urban Local Government Finances

The significance of finance is too obvious to need any elaboration as no organization can exist, much less achieve its objectives, without at least a minimum of finances. That is why Kautilya, the great Indian philosopher, remarked, ‘all undertakings depend upon finance, hence foremost attention should be paid to the treasury.’1 Every administrative act has its financial implications, either creating a charge or making a contribution to the treasury. The importance of finance is so great in administration that Llyod George is said to have once remarked that ‘government is finance’.2 In fact, finance constitutes the backbone, the life and blood of government; it provides fuel to the administrative machinery. Sound ...

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