Friday, April 26, 2013

State Finance Commission recommends financial devolution of Rs. 680.32 crore



By Haryananewswire
CHANDIGARH, APRIL 26
 The Fourth State Finance Commission, Haryana has recommended financial devolution of  Rs. 680.32 crore for the year 2013-14, including Rs. 442.21 crore for Panchayati Raj Institutions and Rs. 238.11 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 excise, stamp duty, surcharge on VAT, grants of 13th Finance Commission and other budgetary transfers.
          This was stated by Mr. L.S.M. Salins, Chairman, Fourth State Finance Commission, Haryana while presenting the interim report of the Commission for the period up to 2013-14 to the Haryana Governor at Haryana Raj Bhavan here today.
          Mr. Salins explained that resource base of local bodies is very poor as compared to their vast responsibilities. As such, these bodies need larger funds for discharging their Constitutional duties of providing minimum acceptable levels of civic amenities.
          He informed that 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. He said that the state Government had requested the Commission to recommend substantial funds for continuing on-going schemes of local bodies. As a result, the Commission decided to submit its interim report as larger funds were required to be transferred to the Panchayats and the Municipalities during 2013-14 for strengthening of rural and urban infrastructure.
          The Chairman said that while framing its scheme of fiscal transfers, the Commission over-viewed the fiscal capacities and status of core civic services of local bodies as also financial position of the State. He was hopeful that this financial devolution would be sufficient to meet the expenditure needs of local bodies on establishment and operation and maintenance 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 reiterated 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.
          After receiving the Interim Report, the Haryana Governor Mr Jagan Nath Paharia, noted very carefully the basic contents of the report in regard to fiscal transfers and particularly the functional transfers to the Panchayati Raj Institutions. 
          The Governor elaborated the main planks of the democratic decentralization and advised the Chairman and Members of the Commission to lay down the general principles in their final report on functional empowerment of these institutions so that the citizens and the elected representatives of these bodies have a feeling of their direct involvement in policy making and programme implementation at the grass-root level.
          Mr Jagan Nath Paharia thanked the Chairman and Members of the Commission for preparing the interim report in a decent way at a very short notice.
          The Chairman and Members of the Commission, while thanking the Governor, felt enriched of his suggestions and assured him their incorporation in the final report of the Commission.
          The other Members of the Commission, who were also present on the occasion included Mr. Subhash Sudha, Mr. Brahampal Rana and  Mr. Shiv Lal Katyal all Members and Mr. L.B. Langayan, IAS (Retd.), Member Secretary and other Senior Officers of the Commission namely Mr. Gian Singh Kamboj and Mr. Ajay Thakur.

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