Reviewing the functioning of local bodies, the Economic
Survey points out that compared to 2010-11 the performance of local
bodies has improved in 2011-12. However, it was observed that all the
tiers of the local bodies utilized only less than 60 per cent of the
allocated sum. The survey further noted that there had been an increase
in the utilization of grants-in-aid, beneficiary contribution and other
sources in 2011-12 compared to the previous financial year. The service
sector has reported better fund utilization than the productive sector.
There had been higher allocation for women component plan, for the aged,
children and for the disabled.

Listing out the
notable achievements, the survey said several replicable models emerged
in different places during the year and there had been a marked
improvement in the participation of women, especially by self help
groups, in local administration. There was improvement in service
delivery.