BANGALOrE: Panchayats are waiting for funds released by the 12th Finance Commission to the Government over a month ago for payment of bills for works completed between March and September last year.

According to sources in the Department of Rural Development and Panchayat Raj, the Finance Commission released Rs. 88.88 crores to the department in December as the first instalment of funds to shore up its resources. The funds are given in the ratio of 70:20:10 for the gram, taluk and zilla panchayats.

The sources said the commission fixed an annual grant of Rs. 177.60 crores for 2005-06, of which the Government was to get Rs. 88.88 crores at the beginning of the year. However, the commission put off release of funds because of the delay in holding zilla and taluk panchayats. Funds were received only in December, after the polls, and credited to the Finance Department in the first week of January. Approval of the new Finance Minister is required for their release to the Department of Rural Development and Panchayat Raj.

On January 18, acting on the advice of the Cabinet, Chief Secretary B.K. Das directed heads of departments against taking major decisions, such as approval for new projects or release of funds, till a new government was formed. The Finance Department has not been able to make funds available to the Rural Development and Panchayat Raj Department, which is under pressure from the panchayat raj institutions.

Second instalment

The sources said the department will have to write to the Union Government for the second instalment of funds for the period from October to March after releasing the funds received.

Because of the delay in holding elections to the zilla and taluk panchayats, the State was adjudged second, after Kerala, in implementing programmes through panchayats. Kerala won a cash prize of Rs. 5 crores and Karnataka Rs. 3 crores.

According to recommendations of the High-power Committee on Regional Imbalances, the Government has to allocate funds to gram panchayats, on the basis of backwardness, for water supply schemes and their repairs, drainage works; measures to protect drinking water sources, rainwater harvesting; construction of panchayat buildings and tanks; and computerisation.

Taluk panchayats have to use funds for infrastructure development; agricultural marketing; providing computer desks to government schools; construction of anganwadi buildings; and computerisation. Zilla panchayats are expected to allocate funds for buildings and furniture.

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