The Hindu : Tamil Nadu / Chennai News : Government urged to increase tax revenue allocation for panchayats

Online edition of India's National Newspaper
Friday, May 20, 2005

Tamil Nadu

Tamil Nadu - Chennai

Government urged to increase tax revenue allocation for panchayats

S. Dorairaj

Local body functionaries of CPI (M) observed a fast on Wednesday to press demands

CHENNAI: : Heads and representatives of local bodies have urged the State Government to introduce a Nagarpalika Act, enhance allocation of tax revenue, provide a linkage for the three-tier panchayats to make grass roots democracy a reality.

Over 300 local body functionaries, of the Communist Party of India (Marxist), observed a fast here on Wednesday to highlight their demands. Party's State secretary N. Varadarajan appealed to them to maintain their integrity and continue the struggle for more powers and funds.

According to G. Ramakrishnan, State secretariat member, the Government should earmark 30.5 per cent of its tax revenue for the local bodies, as recommended by the Twelfth Finance Commission, increasing the States' total share in the divisible pool of the Central taxes from 29.5 to 30.5 per cent. Allocation of a mere 8 per cent from its tax revenue to the local bodies was not enough for daily maintenance works.

Kuzhithurai municipality chairperson A.M.V. Delphine called for devolution of more powers. The local bodies depended on the Government even for taking decisions on development activities, because of the concentration of powers, she said.

M. Palanichamy, president, Palangarai panchayat in Coimbatore district, said the burden of electricity bills strangulated rural local bodies. A steep hike in the tariff from Rs.1.20 to Rs.3.70 a unit added to the woes of the panchayats.

P. Vairan, chairman, Keezhaiyur panchayat union, suggested that there be a three-fold rise in the Government's matching grant on property tax collected by the local bodies.

The problems faced by the women and Dalit panchayat presidents were highlighted by the local body functionaries.

Marked change

S. Anjalai, president, U. Nemili panchayat in Villupuram district, said her panchayat was not a reserved one. The locals elected her president, though she was a Dalit. In the beginning, caste Hindus were reluctant to attend meetings she called. Later, they signed the minutes and stayed away. "Of late, there is a marked change: they attend the meetings."

For T. Elumalai, chief of the Athoor panchayat, "if there is will, there is the way." If they had commitment, the panchayat heads could work for the people's welfare against all odds. The panchayat auctioned black babul trees for Rs.8 lakhs, though the Forest department fixed the value at Rs.1.80 lakhs, he said.

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