Rural local bodies seek change in funding pattern

Highlights

The Zilla Parishad (ZP) and Mandal Praja Parishad (MPP) presidents of the State, starved for funds, are demanding that the government change the pattern of devolution of funds to the local bodies in the period of 15th Finance Commission (FC).

Hyderabad: The Zilla Parishad (ZP) and Mandal Praja Parishad (MPP) presidents of the State, starved for funds, are demanding that the government change the pattern of devolution of funds to the local bodies in the period of 15th Finance Commission (FC).

They demanded share in the FC funds to ZPs and MPPs on the lines of 13th Finance Commission and have been demanding that the government do away with the pattern of devolution of funds followed in the period of 14th Finance Commission. As the Centre had initiated the process for the establishment of 15th Finance Commission, the rural local bodies’ presidents are voicing their demands. Several ZP and MPPs are contemplating to write to the Centre about the issue.

The 15th FC commission would decide the devolution of funds to the States and to the urban and rural local bodies. It would decide the share of Central funds to be given to the State governments and to the local bodies. The FC funds are quite crucial for the ZPs and MPPs in the country. During the 14th FC the rural local bodies were virtually deprived of funds and they were unable to fund the schemes in the villages. As per the pattern of devolution of funds followed in the 14th FC period, the Central funds would go directly to the villages and there would be no share to the ZPs and MPPs.

As the State government did not appoint the State Finance Commission and did not finalise the funding pattern, the rural local bodies did not get funds from the State government also. The State and Union Finance Commission funds are the mainstay for the rural local bodies, particularly to the Zilla Parishads and Mandal Praja Parishads. These bodies do not have any other revenue source than the government funds. At least the village panchayats would get some revenue in the form of property tax.

As there were no funds with them, the ZPs and MPPs have become namesake bodies and the funds given by the State government were just enough to meet the salaries and for the routine expenditure. The Zilla Parishad Territorial Constituency (ZPTC) and Mandal Parishad Territorial Constituency (MPTC) members were unable to do justice to their posts as there were no funds with the ZPs and MPPs to spare for the development activities.

The ZPTCs and MPTCs have the power to recommend works in the villages such as laying roads, sanitation and drinking water and their recommendations were not honoured by the ZPs and MPPs due to lack of funds. Most of the funds of the State government meant for the rural areas are given through the MLAs and Ministers through special development funds, ZPTCs and MPTCs have no powers to use those funds.

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