It was the local government sector for which government allot 40 percent of the state budget in 1996 as a process of decentralisation.The government decided to devolve this sum of budget budget of the state for preparation of development projects formulated by the local governments at the village, block and district levels.It was after a People's Plan Campaign, that was held in 1996 in Kerala State.It was a remarkable experiment in decentralisation of powers to local governments with focus on local planning.