Allocation for panchayat raj bodies disappoints T.N.

By Our Staff Reporter

CHENNAI, AUG. 29. The Eleventh Finance Commission (EFC)'s recommendations, which have attracted severe criticism from southern states on the overall allocation of funds, have left Tamil Nadu even more disappointed. In determining the respective share of states in allotment for panchayats too, the panel has given it a ``raw deal'', despite the State's ``impressive trackrecord'' in pursuing the concept of democratic decentralisation.

An annual outlay of Rs. 93.2 crores has been approved by the Finance Commission for panchayat raj institutions in Tamil Nadu. Though this amount is about Rs. 20 crores more than that of what the Tenth Finance Commission sanctioned, the state feels aggrieved that it has been provided a lesser sum than what it should get.

Sources in the Rural Development department say some states, which have not even conducted elections to the local bodies, have been allotted more money. In this context, they cite the example of Bihar, which has been sanctioned Rs. 157 crores.

The cause for this anomaly is, the sources say, the methodology adopted by the EFC in arriving at the allotment figures.

Among the parameters taken by the panel are rural population, geographical area, index of decentralisation and own revenue efforts of panchayats. The decentralisation index comprises enactment of State Panchayat Legislation in conformity with the 73rd Constitutional Amendment Act.

The Amendment Act, passed by Parliament in 1992, came into force in April 1993. But, Tamil Nadu adopted a legislation to fall in line with the 73rd Amendment only the next year, upto which the deadline was extended by the Central Government for the states which did not enact the requisite laws.

As Bihar was one among the first few states which passed the legislation, this feature was given certain weightage and consequently, it got more funds than Tamil Nadu.

Questioning this rationale, the sources say the mere fact that some states were the first to adopt laws, should not have been considered, while giving weightage to the index of decentralisation. ``Instead, those, which held elections to the panchayats and have been granting more powers to them, should have been given more incentives. Also, the panel should have awarded dis-incentives to states which have not conducted elections to the panchayats so far''.

In Tamil Nadu, as part of democratic decentralisation, the local bodies have been given greater taxation powers, particularly on matters such as advertisement and cable television entertainment. To devolve more powers, the Second State Finance Commission has been constituted by the State Government.

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Section  : Southern States
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