Online edition of India's National Newspaper
Saturday, Jul 28, 2007
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Online edition of India's National Newspaper Saturday, Jul 28, 2007 ePaper |
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Tamil Nadu
R.K. Radhakrishnan
CHENNAI: Village panchayat presidents are worried for a different reason these days: how to effectively utilise the huge increase in funding coming their way. Compared to last year, the 12,618 village panchayats together in the State will get Rs.400 crore more, which will ensure that a lot of money will be at the disposal of the elected body to take up pending and urgent development work. This was one of the main points highlighted by Local Administration Minister M.K.Stalin at the two zonal conferences he has held so far, in Erode and Tiruchi. He explained that this was achieved through three methods. One was to increase the total amount of State’s Own Tax Revenue (SoTR) transferred to local bodies. In 2006-07, the rural local bodies (the village panchayats, the panchayat unions and district panchayats) shared between themselves Rs.1,225 crore. In 2007-08, because of the one per cent increase in transfer, the amount to be shared between the rural local bodies rose to Rs.1,586 crore. The changes did not end there. The share for each tier of the rural elected bodies is decided on the basis of a State Finance Commission recommendation. In 2006-07, the district panchayats got 8 per cent of the amount; the panchayat unions 45 per cent and village panchayats 47 per cent. After the third SFC submitted its report, this was redrawn and the village panchayats got a significant hike — 60 per cent of the funds. The allocation for district panchayats remains unchanged. Apart from this a fixed Central grant of Rs.174 crore was being shared between the 385 panchayat unions and village panchayats in the ratio 20 per cent to eighty percent. Now, the whole money will be divided among the 12,618 village panchayats. The larger picture that emerges is this: in 2006-07, the total amount available for devolution was Rs.714 crore (Rs.575 crore from the SoTR and Rs.139 crore from Central grants). This has jumped to Rs.1,126 crore (Rs.952 crore from SoTR and Rs.174 crore from Central grants). With these villages can now finally pay their power bills, pay their staff and also take up development work. “This situation is unprecedented,” a senior official said. Most local bodies frequently complain about the high power bills that are imposed on them. The arrears run into over a few hundred crores of rupees. Waiver
The Local Administration department, after consultations with the Electricity Board, had announced a waiver of all outstanding dues and a reduction in power charges. Most importantly, giving in to the demand from village panchayats, the Board has announced that it would install electricity meters in all village panchayats and has also reduced the amount charged for putting up an electricity pole. In the two zonal meetings, village panchayat presidents complained about the arbitrary functioning of the Board; low voltage issues and that the Board was unresponsive whenever they approached it with any routine request. They also wanted identity cards issued to them and an enhancement in travelling allowance rates. These two requests were immediately accepted by Mr.Stalin. He told them that the High Power Committee constituted to study devolution would study the other issues raised by the elected representatives.
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