The Hindu : Karnataka News : Increase in outlay to strengthen panchayat raj system

Online edition of India's National Newspaper
Monday, Mar 14, 2005

Karnataka

Karnataka

Increase in outlay to strengthen panchayat raj system

By M. Madan Mohan

HUBLI, MARCH 13. When the Deputy Chief Minister and Finance Minister, Siddaramaiah, announced an increase in the district sector outlay from Rs. 960 crores to Rs. 2,500 crores during his budget speech on Friday, he was empowering the panchayat raj system in the State.

For the first time since the process of decentralising democratic institutions began in Karnataka more than a decade ago, a financial commitment has been made towards empowering panchayat raj institutions.

This comes nearly 13 years after the adoption of 73rd and 74th Constitutional amendments, which envisaged the strengthening of rural and urban local bodies. Two years after that, the Karnataka Panchayat Raj Act, 1993 was amended to take further legislative steps towards democratic decentralisation.

Activity mapping

In October, the Dharam Singh Government took the first step for transferring finances, functions and functionaries to the three-tier panchayat raj bodies. An activity mapping exercise was conducted to clearly delineate the functions of each tier to avoid confusion and overlapping of functions.

The Government has now legitimised the transfer of funds and schemes to the panchayat raj institutions. The budgetary allocation comes with a link document giving details of the sectoral allocation of funds, schemes transferred from the State sector to panchayat raj institutions, and the district-wise allocation of funds to the different levels.

Sources are of the opinion that the link document is a landmark achievement in empowering panchayat raj institutions in Karnataka. It is an irreversible step, and any move to withdraw the powers will have to be done through an amendment to the Act, they said.

The change in system comes at a time when a new team of office-bearers will assume responsibility in over 5,600 gram panchayats in the State. When the new gram panchayat members assume office, they will head institutions that have been considerably strengthened to achieve development at the grass-roots level.

The panchayat raj institutions will now have the finances and powers to take up projects within their jurisdiction.

It may be noted that Karnataka was the first State in the country to adopt a new panchayat raj law, the Karnataka Panchayat Raj Act, in 1993. When the Congress came back to power in the State in 1999, the Act was amended to ensure empowerment of the rural and urban local bodies. However, the amendment was accepted and passed only in 2003.

Transfer of funds

Mr. Dharam Singh approved the transfer of finances and functionaries from the State sector to the district sector in the middle of the current financial year to enable the panchayat raj institutions to get a feel of their new responsibilities. According to the Budget, around 170 schemes have been transferred to the district sector, increasing the responsibilities of the panchayats.

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