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Fiscal decentralization enhances the political participation at local level. The parameter of health has been one of the focal point of MDGs being an immense contributing factor to improve the quality of life. Basically, Fiscal decentralization fundamentally shifts the focus to provide basic services resulting in Good Governance. Very little empirical work has been done to provide an analytical framework to systematically analyze the impact of decentralization on health outcomes to access the basic amenities and facilities at grass root level. This piece of work therefore, renders the factors which enables the mechanism of decentralization to empower the local government leading to efficient allocation of public resources to achieve MDGs by linking it with the need of grass root level. The budget of 2009-2010 of Kolkata Municipal Corporation has been the source of inputs here. The budget allocation of K.M.C for health related aspects has been assessed at borough level and at wardlevel. Thus, the analysis shed some light on the successful implementation of decentralization of fiscal powers to achieve MDGs to improve the quality of life leading to the mechanism of Good Governance.