CHANDIGARH, JUNE 27
The Fourth State Finance Commission, Haryana has recommended a financial devolution of Rs. 3,573.12 crore for local bodies for five years that is from 2011 – 12 to 2015 – 16.
This amount is including Rs 2,322.52 crore for Panchayati Raj Institutions and Rs 1,250.60 crore for Urban Local Bodies through the mechanism of global sharing of state own tax revenues. This devolution is over and above the funds already being transferred to these bodies through state budget and other transfers.
This was disclosed by Chairman, Fourth State Finance Commission Haryana Mr. L.S.M. Salins, while presenting the final Report of the Commission for the period from 2011 – 12 to 2015 – 16 to Haryana Governor Mr. Jagannath Pahadia, at Haryana Raj Bhawan here today.
Mr. Salins apprised Mr. Pahadia that resource base of local bodies is inadequate as compared to the vast responsibilities cast on them. Therefore, these bodies need larger funds for discharging their constitutional duties of providing minimum acceptable levels of civic amenities. The 4th State Finance Commission was constituted by the State Government to recommend sharing of state revenues with the rural and urban local bodies and also to suggest measures of augmentation of their internal resources.
The Chairman said that while framing its scheme of fiscal transfers, the Commission scrutinized the overall fiscal capacities and status of core civic services of local bodies as also financial position of the State. He hoped that this financial devolution would be sufficient to meet the expenditure needs of local bodies on establishment and Operation and Maintenance (O & M) cost of basic public services. But at the same time, he also cautioned that local bodies would need to fully utilize their enabling taxation powers and raising internal resources through their own efforts in order to be able to work as viable and effective units of local governance.
He re-iterated that the approach of the Commission has been guided by the constitutional objectives of empowerment of local bodies through the process of democratic decentralization and the principles of equity and efficiency aiming at providing citizens of each unit of government a comparable standard of services. However, the distribution criteria of the Commission takes into account the issues like socio-economic backwardness, fiscal capacities and financial needs of local bodies, he added.
Haryana Governor Mr. Jagannath Pahadia, while noting the basic contents of the report said that the basic objectives of constitutional amendments of strengthening functional and financial autonomy of local bodies have not been achieved in many States. He elaborated the main planks of the democratic decentralization and thanked the Chairman and Members of the Commission for preparing the report in a decent way and appreciated their efforts for making effective recommendations in the desired directions.
The other Members of the Commission, who were also present on this occasion included Mr. Subhash Sudha, Mr. Brahampal Rana and Mr. Shiv Lal Katyal all Members and Mr. R.B. Langayan, Member Secretary and other senior officers of the Commission namely Mr. Gian Singh Kamboj and Mr. Ajay Thakur.
The Fourth State Finance Commission, Haryana has recommended a financial devolution of Rs. 3,573.12 crore for local bodies for five years that is from 2011 – 12 to 2015 – 16.
This amount is including Rs 2,322.52 crore for Panchayati Raj Institutions and Rs 1,250.60 crore for Urban Local Bodies through the mechanism of global sharing of state own tax revenues. This devolution is over and above the funds already being transferred to these bodies through state budget and other transfers.
This was disclosed by Chairman, Fourth State Finance Commission Haryana Mr. L.S.M. Salins, while presenting the final Report of the Commission for the period from 2011 – 12 to 2015 – 16 to Haryana Governor Mr. Jagannath Pahadia, at Haryana Raj Bhawan here today.
Mr. Salins apprised Mr. Pahadia that resource base of local bodies is inadequate as compared to the vast responsibilities cast on them. Therefore, these bodies need larger funds for discharging their constitutional duties of providing minimum acceptable levels of civic amenities. The 4th State Finance Commission was constituted by the State Government to recommend sharing of state revenues with the rural and urban local bodies and also to suggest measures of augmentation of their internal resources.
The Chairman said that while framing its scheme of fiscal transfers, the Commission scrutinized the overall fiscal capacities and status of core civic services of local bodies as also financial position of the State. He hoped that this financial devolution would be sufficient to meet the expenditure needs of local bodies on establishment and Operation and Maintenance (O & M) cost of basic public services. But at the same time, he also cautioned that local bodies would need to fully utilize their enabling taxation powers and raising internal resources through their own efforts in order to be able to work as viable and effective units of local governance.
He re-iterated that the approach of the Commission has been guided by the constitutional objectives of empowerment of local bodies through the process of democratic decentralization and the principles of equity and efficiency aiming at providing citizens of each unit of government a comparable standard of services. However, the distribution criteria of the Commission takes into account the issues like socio-economic backwardness, fiscal capacities and financial needs of local bodies, he added.
Haryana Governor Mr. Jagannath Pahadia, while noting the basic contents of the report said that the basic objectives of constitutional amendments of strengthening functional and financial autonomy of local bodies have not been achieved in many States. He elaborated the main planks of the democratic decentralization and thanked the Chairman and Members of the Commission for preparing the report in a decent way and appreciated their efforts for making effective recommendations in the desired directions.
The other Members of the Commission, who were also present on this occasion included Mr. Subhash Sudha, Mr. Brahampal Rana and Mr. Shiv Lal Katyal all Members and Mr. R.B. Langayan, Member Secretary and other senior officers of the Commission namely Mr. Gian Singh Kamboj and Mr. Ajay Thakur.
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