World Bank approves $210 million loan for West Bengal's gram panchayat development
KOLKATA: The World Bank has sanctioned a $210 million loan for the Indian state of West Bengal to strengthen the state's gram panchayats, the lowest tier of rural local governments.
The loan will be used to strengthen local communities’ participation in the planning, budgeting, and financial management of projects undertaken in rural areas, where most of the poor in the state reside. West Bengal is home to nine crore population and most of them resides in rural areas.
Following the recommendations of the 14th Central Finance Commission and the 4th State Finance Commission, fund flows to gram panchayats and local bodies will more than double by 2020.
The West Bengal Support to Institutional Strengthening of Gram Panchayat Program – phase II, will support all 3,342 gram panchayats in the state to effectively utilise these discretionary funds that is being provided to them under the inter-governmental fiscal transfer system.
Out of the 92,000 activities carried out by these local bodies using central government grants, 54% was on transport, 23% on water and sanitation, and 20% on public buildings.
“Bringing the state closer to citizens has been an important promise of India’s democracy. Effective and accountable Panchayati Raj Institutions empowered with additional resources can help deliver on this promise.” said Junaid Ahmad, World Bank Country Director for India.
The loan will be used to strengthen local communities’ participation in the planning, budgeting, and financial management of projects undertaken in rural areas, where most of the poor in the state reside. West Bengal is home to nine crore population and most of them resides in rural areas.
Following the recommendations of the 14th Central Finance Commission and the 4th State Finance Commission, fund flows to gram panchayats and local bodies will more than double by 2020.
The West Bengal Support to Institutional Strengthening of Gram Panchayat Program – phase II, will support all 3,342 gram panchayats in the state to effectively utilise these discretionary funds that is being provided to them under the inter-governmental fiscal transfer system.
Out of the 92,000 activities carried out by these local bodies using central government grants, 54% was on transport, 23% on water and sanitation, and 20% on public buildings.
“Bringing the state closer to citizens has been an important promise of India’s democracy. Effective and accountable Panchayati Raj Institutions empowered with additional resources can help deliver on this promise.” said Junaid Ahmad, World Bank Country Director for India.
