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Centre asks states to provide adequate funds to PRIs

The Centre has asked the state governments to provide adequate funds to Panchayati Raj Institutions (PRI), by utilising enhanced fiscal…

Centre asks states to provide adequate funds to PRIs

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The Centre has asked the state governments to provide adequate funds to Panchayati Raj Institutions (PRI), by utilising enhanced fiscal grants provided by the 14th Finance Commission.

The Finance Commission has recommended that these grants should go only to Gram Panchayats as they are directly responsible for the delivery of basic services without any share for other levels.

Shimla Member Parliament, Virender Kashyap in a statement on Wednesday disclosed that Union Minister of State for Panchayati Raj Parshottam Rupala had informed him that the Ministry of Panchayati Raj has asked the state governments to provide adequate funds to Zila Parishads and Block Samitis by utilising the enhanced fiscal grants made available to the states by the 14th Finance Commission on account of higher devolution from 32 per cent to 42 per cent of the Centre’s net tax receipts for the purpose.

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He told that the Finance Commission has inter alia observed that the state governments are expected to take care of the needs of Taluk and Zila Panchayats for delivering basic services through audited accounts and for improvement of own source revenue.

Rupala told Kashyap that the grants received through the Union Finance Commission award are merely additional, as the states also have to provide sufficient resources to the Panchayats.

All the three tiers of Panchayats receive funds from various sources, including awards of the Union Finance Commission, State Finance Commissions (SFCs), and programmes of Union and state governments and through tax/non A tax measures.

These Panchayats is also mandated to generate their own resources.

Under the 14th Finance Commission, grants to the tune of Rs.2, 00,292.20 crore are being devolved to Gram Panchayats constituted under Part IX of the Constitution for the award period 2015-20, amounting to an assistance of Rs.488 per capita per annum at an aggregate level to 26 states for delivering basic services, creation of reliable data base of local bodies’ receipts and expenditure through audited accounts and for improvement of own source revenue.

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