The Hindu : Fiscal reforms hit the grassroots

Online edition of India's National Newspaper
Thursday, Aug 22, 2002

Southern States

Southern States - Kerala

Fiscal reforms hit the grassroots

By C. Gouridasan Nair

THIRUVANANTHAPURAM AUG. 21. Even as fiscal reforms get experimented in fits and starts at the State level, local bodies are being told to imbibe the spirit of economic reforms being pushed with vigour at the national level and go in for such measures as imposition of user charges on public utilities, streamlining of administration and private participation in development projects.

The Tenth Five Year Plan is being formulated on the core principle of reform both at administrative and fiscal levels, which, the Government claims, is in keeping with the National Development Council's perceptions about the shape of State finances and ways to bring about better fiscal discipline at the grassroots. The most prominent among the decisions that have been taken, and notified, with these ends in view are to go in for five-year plans and jettison several of the practices adopted when formulating the Ninth Five Year Plan.

The Government wants the local bodies to base their general approach towards local-level development during the Tenth Five Year Plan on five factors: adherence to strict financial discipline and curbs on wasteful expenditure, formulation of programmes and schemes that would benefit the lowest segment of society, effective implementation of schemes in the manufacturing sector through the local bodies, channelisation of employment-generation schemes in the direction of higher production and enlistment of private investment in development activities.

According to Government sources, the decision to revert to the five-year plan mode is intended to avert delay in annual Plan formulation and to nurture the practice of long-term planning. Each district has been asked to formulate its approach to district development on the basis of the District Plans prepared two years ago and the Potential-Linked Credit Plan, prepared recently with guidance from Nabard.

The District Plans should be prepared through consultations between presidents of local bodies, the district planning committee, the technical advisory committee, voluntary organisations, professionals from the Government and non-Government sectors and district-level officials of nationalised banks. The new guidelines for Plan formulation have a detailed discussion on the subject.

The Government has also decided to revive the tender system in respect of all work costing more than Rs. 25,000. This has been done on the perception that implementation of schemes through beneficiaries' committees had resulted in `benamis' of contractors cornering work in the name of beneficiary committees. From now on, cooperative societies and charitable societies would not be awarded any such work. If PTAs of specific schools are prepared to take up construction of schools and anganawadis, the work would be awarded to them.

All tarring work would be tendered. Only contracts involving more than 75 per cent earth work would be given to beneficiary committees. The Government feels that such small work should ideally be executed through Community Development Societies under Kudumbashree. It also wants local-level monitoring committees to be constituted to ensure transparency and quality in work awarded to contractors.

The local bodies have been told to solicit small and large private sector investment to create more employment opportunities at the local level. They have been advised to organise investor meets, make raw materials available to entrepreneurs and create infrastructure facilities necessary for local-level investment efforts. District panchayats and Block Panchayats are being discouraged from taking up small schemes and are being told that they should not take up any work other than distribution of land for the landless to facilitate construction of houses.

The Government has also decided to appoint two facilitators, one male and the other female, in each local body to enhance people's participation in Grama Sabhas. The local bodies should strive to get financial assistance from individuals, non-resident Keralites, corporates and non-governmental organisations for development activities.

The assets created during the Ninth Five Year Plan period would be quantified. The local bodies have been asked to complete projects that have remained incomplete even after advance payments were made and take action against persons responsible failure to complete projects within the set deadline. The reconstituted Sectoral Committees in the local bodies would be known as Working Groups. They would continue to function during the entire Plan period.

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

Southern States

Stories in this Section

PCC chief suspends Leno Jacob

Kumarakom boat race tomorrow

Onam programmes in Kollam

Hundreds partake in Aranmula `Onasadya'

Onam celebrated with gaiety

Express Highway project making progress

Church row puts Govt. in a fix

Fiscal reforms hit the grassroots