Kerala - Thiruvananthapuram   

Finance panel's second report soon

THIRUVANANTHAPURAM: The second report of the Fourth State Finance Commission, which focusses on institutionalising decentralisation of powers and devolution of funds to the local self-government institutions in the State, will be submitted within a fortnight.

The State government had approved the first report of the commission, headed by M.A. Oommen economist, in toto and budgetary allocations have been made for the local bodies for 2011-12 as per its recommendations.

Official sources told The Hindu here that the second report would put forward recommendations to help the decentralisation movement gain momentum and move forward on its own. The recommendations were expected to make the local bodies more self-reliant.

The report is expected to make a plea to the Union government to amend the conditions put forth for the implementation of the Centrally sponsored schemes in the State.

It will uphold the notion that the norms are being framed in disregard of the unique features of the State. Be it the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) or the Sarva Shiksha Abhiyan (SSA), the operational norms have been prepared to address the joblessness or the low literacy and the high dropout rates in the north Indian States.

Hence, the commission will seek more flexibility to implement these flagship schemes to suit the conditions in the State.

A flexible approach will enable the State government to utilise the MGNREGS funds for enhancing agricultural production and the SSA funds for improving the quality of school education through more meaningful interventions, sources said.

As part of the suggestions to help the local bodies mop up more revenue, the commission will recommend that the State urge the Centre to raise the professional tax ceiling to a reasonable level from the current Rs.25,000. The proposal has been formed considering the remarkable increase in the salaries of professionals in various sectors.

Streamlining tax collection and altering the accounting system were some of the key recommendations of its first report.

The commission will seek Central assistance for financially weak local bodies and some of the best practices in decentralised governance and development evolved in the State, such as the Green Kerala Express, so that it can be carried forward in a better manner.

As the local bodies are not entitled to levy tax from the buildings housing Union government offices, the commission may recommend the State government to seek a compensatory grant, sources said.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Need to equip lifeline structures stressed
Collector warns erring gas agencies
Palmolein case: VACB seeks further probe
Indecision over VS' candidature
Finance panel's second report soon
Restrictions on exit poll surveys
‘BJP will be a key player in elections'
Congress-JSS talks put on hold
Murali leaves poll decisions to party
Telecom adalat to be held this month

Copyright © 2011, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu