Innovative Journal of Business and Management 2018-07-14T05:11:41+00:00 business and management Open Journal Systems INNOVATIVE JOURNAL OF BUSINESS AND MANAGEMENT [IJBM] The Effect of Fiscal Decentralisation on the Expenditure of Urban Local Bodies: An Econometric Evidence from Mangalore City Corporation-India 2018-07-14T05:11:41+00:00 Vincent Vinod Dsouza <p>Fiscal decentralisation refers to the enactment of laws to empower local bodies to collect their<br>own taxes, embark on expenditure and investment activities among others independent of the central or state<br>government. Thus given the enormous challenges such as inadequate infrastructure, unemployment, poverty<br>among others that confront central governments as well local bodies, fiscal decentralisation is advocated to<br>empower local bodies financially to be able to take initiatives to solve most of the challenges at the local<br>level and therefore taking some burden from the central government. Given this backdrop, several countries<br>including India have adopted fiscal decentralisation at varying degrees. This study therefore used time<br>series data from 1987-2015 as well as the OLS econometric regression technique while testing for<br>heteroskedasticity using the Breusch-Pagan / Cook-Weisberg test to investigate the effect of fiscal<br>decentralisation on the expenditure or payments of Mangalore City Corporation in India. The study found<br>fiscal decentralisation to have statistically positive significant effect on payments, capital payments and total<br>expenditure of Mangalore City Corporation. Further, gross domestic income was revealed to have positive<br>significant effects on payments and capital payments of Mangalore City Corporation. Thus, factors that<br>enhance fiscal decentralisation and economic growth need to be instituted by policy makers in India in<br>order to boost expenditure towards curbing the various challenges that confront Local Urban Bodies<br>(ULBs).</p> 2018-07-14T00:00:00+00:00 ##submission.copyrightStatement##