People's Planning refers to the establishment of local self-government institutions in Kerala in 1996 as per the 73rd and 74th amendments of the Constitution of India in 1992 which entrusted states with the responsibility of establishing Panchayati Raj institutions and Urban Local Bodies.
[1] During the ninth plan, the Government of Kerala took a decision to devolve 35 percent of the state development budget down from a centralized bureaucracy to local governments where local people could determine and implement their own development priorities.
[2] Studies on the performance of the people's planning and decentralization tend to show a mixed trend: it is not a resounding success but also not an utter failure.
"[4] These challenges often prevent the state government to pass the financial and management functions to the local level.
This is attributed to the elimination of the opportunity for administrative corruption as well as the increased transparency due to the involvement of several people at several levels of the decision-making process.