The Hindu : Tamil Nadu News : Fund-starved panchayat chiefs threaten to quit

Online edition of India's National Newspaper
Wednesday, Aug 18, 2004

Tamil Nadu

Tamil Nadu

Fund-starved panchayat chiefs threaten to quit

By Our Staff Reporter

DINDIGUL AUG. 17. The presidents of 23 village panchayats in Nilakottai taluk here have threatened to resign en masse as funds released by the Central and State Governments have not reached them fully. They said they could just maintain the existing infrastructure with panchayat revenue.

In a signed letter sent to the Governor and the Chief Minister today, the presidents pointed out that even the grant released by the State Finance Commission did not reach these panchayats fully.

With acute drought prevailing, residents could not pay house taxes properly. The panchayats, which were reeling under an acute financial crisis, could not even provide basic amenities. Power consumption charges for each panchayat were Rs.45,000-50,000. A major portion of the grant given by the State Government was deducted against electricity charges. The presidents appealed to the Government to meet the power bill. The Tamil Nadu Electricity Board did not inform the panchayats of power consumption charges, not did it issue them even distribution cards, the presidents complained.

No water, but tax

In spite of an acute drinking water crisis, water tax was deducted from panchayat funds every month. The Tamil Nadu Water and Drainage Board could not supply water to many villages continuously even for a month. The presidents requested that water tax be not deducted when the board failed to supply water to village panchayats. If the Government failed to solve their problems immediately, they would resign their posts, said the presidents.

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