Representatives of Panchayat Raj Institutions (PRIs) and urban local bodies have represented to the 15th Finance Commission to devolve more funds to the local bodies.
The representatives of PRIs also urged the Commission to restore share of revenue to Zilla and Mandal Praja Parishads that was discontinued under the 14th Finance Commission.
The Commission headed by its Chairman N.K. Singh and members listened to the concerns raised by the people’s representatives of local bodies here on Monday.
The commission had detailed discussions on several issues highlighted by the representatives of PRIs. Apart from the representatives of rural and urban local bodies, State Finance Chairman Rajesham Goud and members were also present in the meeting.
Per capita grant
Representatives of four municipal corporations and six municipalities said that the per capita grant given to urban local bodies should be increased at least three times as the present ₹400 per capita grant allocated by the 13th and 14th Finance Commissions was grossly inadequate.
Thatiparthy Municipal Chairperson Vijayalakshmi Devender Reddy said that the amount should at least be increased to ₹1,200 to help the urban local bodies provide better amenities to people.
They could not take up much development work due to paucity of funds and faced hardships.
The representatives of rural local bodies pointed out that many tribal tandas were upgraded as panchayats and there was requirement of more funds to provide basic infrastructure facilities. Representatibes of ZPs and MPPs said that their own tax revenue was negligible -- being less than 0.05% of total revenue in 2016-17 and 2017-18. However, it constituted almost 23% for gram panchayats (GPs) in the two years -- mainly from immovable property tax.
The own non-tax revenue of each tier of PRIs was less than 5% of their total revenue in 2016-17 and 2017-18. The major source of revenue of GPs was transfer from the 14 Finance Commission that comprised around 55% of total revenue of GPs in those two years.
It was pointed out in the discussions that the Telangana State had devolved only 10 out of 29 functions envisaged in the constitution to the PRIs which numbered 13,198 in the State, including 12,751 GPs.
In the case of 142 urban local bodies, including six municipal corporations, 17 out of 18 functions were devolved to them.
The report of Comptroller and Auditor General on rural local bodies for 2016-17 also figured in the discussion.
Encroachment
The report pointed out failure of PRIs to have proper inventory of land in their possession and it resulted in encroachment of PRI’s land and also failure to execute water supply schemes as there was no clarity on source of funding.
In the case of urban local bodies ,the CAG report cited failure of GHMC to ensure compliance to Building Rules and it resulted in proliferation of unauthorised constructions.
Other failures of GHMC were setting up waste to energy plants and protection of water bodies. While 17 lakes in GHMC were not traceable, nine lakes were totally encroached.