ULBs and PRIs seek additional funds from Finance Commission

HYDERABAD: The representatives of the Urban Local Bodies (ULBs) and Panchayat Raj Institutions  (PRIs) sought more funds from the Fifteenth Finance Commission (FFC). Several Mayors, Zilla Parishad chairpersons and representatives of trade and business submitted representations to FFC here on Monday.

FFC chairman NK Singh team arrived in Hyderabad on Monday. Chief Secretary SK Joshi and Finance Principal Secretary K Ramakrishna Rao welcomed Singh at Shamshabad airport. Later, the FFC met peoples’ representatives, politicians and others. Chief Minister K Chandrasekhar Rao hosted a dinner for the FFC at a city hotel later on Monday.

The Chief Minister will give a detailed presentation to the FFC seeking more funds to performing States like Telangana at Jubilee Hall on Tuesday. The FFC will hold a meeting with financial experts at ISB on Wednesday.

During the deliberations with representatives of Urban Local Bodies, Hyderabad Mayor Bonthu Rammohan urged the FFC to give funds to SRDP project and development of parks in the city.  
BJP MLC N Ramachandra Rao urged the FFC to release funds to Kaleshwaram Lift Irrigation Scheme, Mission Kakatiya and Mission Bhagiratha projects. The BJP leader also told the FFC that the State government was diverting the funds released to local bodies.

PRIs’ revenues

During their interaction with the FFC, the representatives of Panchayat Raj Institutions (PRIs) pointed out that ten out of 29 functions envisaged in the 11th Schedule of the Constitution devolved to PRIs. The own tax revenue of Zilla Parishats and Mandal Parishats was negligible, being less than 0.05 per cent of total revenue in 2016-17 and 2017-18.

However, it constituted almost 23 per cent of the Gram Panchayats in these two years, mainly from immovable property tax.Own non-tax revenue of each tier of PRIs was less than five per cent of their total revenue in 2016-17 and 2017-18. Major source of revenue of Gram Panchayat is transfers from 14th Finance Commission, which comprised around 55 per cent of the total revenue of Gram Panchayats in 2016-17 and 2017-18.

GST impact on ULBs

The meeting between ULBs and FFC discussed issues like the impact of implementation of GST on ULBs due to issues like subsuming of entertainment tax and compensation to ULBs by State government. The supply of free water across the State, the functioning of the SPVs set up by the State government for various projects. As many as 17 functions out of 18 envisaged in the 12th Schedule of the Constitution devolved to ULBs.

The Commission also had a detailed meeting with the trade associations and industry bodies. Representatives of ETAPCCI, CII, TIF, and others were present.The Commission noted that the tertiary sector is the largest contributor to GSVA (current prices) of Telangana — IT and ITeS units have been key drivers. Telangana State’s share is over 10 per cent of  the country’s IT exports. Share of secondary sector in GSVA (current prices) of Telangana is lowest amongst all southern states.

The growth rate of GST revenue Telangana was 20 per cent against 14.7 per cent for Andhra Pradesh from April to December, 2018. The Commission was very appreciative of the State government’s initiatives for skill development through its project TASK.

MAUD briefs FFC on initiatives taken up in ULBs

Hyderabad : Principal Secretary to Municipal Administration and Urban Development (MAUD), Arvind Kumar briefed the Fifteenth Finance Commission on various initiatives taken up by Telangana government in Municipal areas. He said that presently the State constitutes of 1.45 crore urban population amounting to 42 per cent of the total population and is likely to get enhanced by 50 per cent by the end of 2021. He said that under Centre’s Swachh Bharat Mission programme, Hyderabad and Warangal cities have been declared as ODF ++, besides 64 out of 74 ULBs have been certified as open defecation free (ODF). The government introduced 2,500 Swachh Autos in GHMC which led to cent per cent door to door garbage collection. He said that GHMC is the only ULB in the country which has raised finances by issue of `200 crore bonds for providing better infrastructure facilities in Hyderabad. He said that Telangana Heritage Act has been introduced which envisages development of heritage sites.