Fifth State Finance Commission holds meeting

The fifth State Finance Commission (SFC) has asked urban local bodies (municipalities and municipal corporations) to design long-term strategies to boost revenue using its revenue base

The fifth State Finance Commission (SFC) has asked urban local bodies (municipalities and municipal corporations) to design long-term strategies to boost revenue using its revenue base.

Commission chairman C. Narayanaswamy and members Mohammad Sanaulla, S. Phonde, and UjjwalKumar Ghosh Managing Director, Karnataka State Financial Corporation, chaired a meeting to evaluate the financial position of ULBs and Panchayat Raj institutions and make its recommendations to the government.

The officials of Municipal Corporations from seven districts of Kalyana Karnataka region provided the details of financial progress of their respective corporations and ULBs. The officials expressed that the corporations are gasping for funds, though the action plan was submitted well in-advance there was a delay in releasing the funds. The lack of funds hampered implementation of work.

While Mr. Narayanaswamy said that 73rd Constitutional Amendment Act, 1992, formally recognized a three-tier system of local self-governance comprising village, block and district level bodies. The 73rd Amendment gave the gram panchayats a real boost in the form of endowing it with a constitutional status, thereby assigning them with funds and functions.

Mr. Narayanaswamy advised the Municipal Corporations to use their resources and generate their own revenue instead of depending on government grants. He asked the officials to collect property taxes, fees from building permissions, service fee, trade license fee, and advertisements charges on a regular basis. The officials should create awareness and encourage people to pay property taxes.

The Commission also directed the corporations to collect the long-pending taxes of government departments in their respective districts. Most municipalities and municipal corporations were reeling under staff shortage; around 50% of sanctioned posts were lying vacant in Kalaburagi, Ballari, Yadgir and Raichur city corporations, while Bidar City Municipal Corporation was working with only 40% of staff against the sanctioned posts.

Expressing concern over gram panchayats running up power bills amounting to crores, Mr. Narayanaswamy asked to take measures to check power consumption, leakage and theft.