Fiscal decentralization is generally refers to the devolution of taxing and spending powers to lower levels. It is considered to be the most important for the success of planning and decision making process at the local level. One of the important objectives of decentralization has been provide quality health care services to all. Decentralization has been identified as a means of achieving health equity in many reform initiatives across the world. WHO (1978) argued that decentralization can make health system functions more efficiently and can increase community involvement in oversight and locally relevant decision making. Kerala is a state in south-west of India, which is known to have decentralised its governance in ways far more advanced than most Indian states and the state has a well known health model. There is a vast change in health infrastructure of Kerala after decentralisation, there is an establishment of more health centres, beds and other facilities in public health cenbtres of Kerala. But the progress in human resource is not much satisfactory and the resource allocated for the maintenance of health centres at Grama Panchayat level were seems to low.