A select number of people representatives of Panchayat Raj institutions and urban local bodies would make a case with the visiting 15th Central Finance Commission to enhance the quantum of funds to the local bodies. More so to release the share of funds that the zilla and mandal parishads used to get directly till the 14th Finance Commission discontinued the practice and diverted them to the gram panchayats.
One of the main tasks of the Central Finance Commission is to ensure adequate funds to the local bodies to facilitate better local governance. It is mandatory for it to examine the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the State on the basis of the recommendations made by the Finance Commission of the State. The Telangana State Finance Commission, constituted in January 2018, is in the process of formulating its recommendations and had been gathering data on the income and expenditure of local bodies vis-a-vis their duties and responsibilities under the 73rd amendment to the Constitution. It has engaged Administrative Staff College of India (ASCI) and Centre for Economic and Social Studies (CESS) to give reports and recommendations on strengthening of urban and rural local bodies respectively.
Inclusive development
“Chief Minister K. Chandrasekhar Rao is of the firm opinion that without expansion of rural economy and strengthening of local bodies, inclusive development is not possible. We have been holding series of meetings with representatives of rural local bodies like zilla parishad chairpersons, chief executive officers, village sarpanches, mayors and corporators on their financial resources, requirement and funds they got from the Central and State governments,” State Finance Commission Chairman Rajesham Goud told The Hindu. One of the concerns voiced by the zilla parishad representatives is that the 14th Finance Commission had diverted 25% of funds that used to be earmarked to the zilla parishads and mandal parishads by the earlier Finance Commissions also to the gram panchayats and released funds directly to the Gram Panchayats. As a result, in the last five years, the zilla and mandal parishads were finding it difficult to mobilise even maintenance expenditure. They will be representing to the 15th Finance Commission to restore due share of funds to the zilla and mandal parishads.
Per capita grant
The 15th Finance Commission is meeting the representatives of urban and rural local bodies on February 18 and the members will raise their concerns and give representations for devolution of funds. They are also seeking hike in the per capita grant to the local bodies.
Chief Minister K. Chandrasekhar Rao has already announced matching grant of what the Central government will give to the local bodies in order to financially strengthen them.