Special officers’ rule may cut Finance Commission funds to panchayats

Srikakulam: Gram panchayats in the state may lose Finance Commission (FC) grants in the current in view of special officers’ rule. The panchayats have come under special officers’ rule after the expiry of elected bodies tenure on August 2. 

The Central government norms stipulate that existence of elected bodies are essential for allocation of funds directly to gram panchayats through Finance Commission. In the past too, Finance Commission fund allocation was stopped from 2011 to 2013 as gram panchayats were under special officers’ rule. 

Without Finance Commission funds, panchayats have to depend on general funds which are generated from house and water tax collections. The collection of these taxes is disappointing in panchayats, some of which do not even meet 50 per cent target in tax collection. 

In the current financial year, gram panchayats in Srikakulam district have received Rs 56 crore under 14th Finance Commission, and another Rs 56 crore is needed until the end of this financial year. But in the wake of special officers’ rule, the allocation of these funds may be postponed for some more months, affecting the developmental works in panchayats. 

With the state government giving no hints of holding panchayat elections in near future, gram panchayats will lose heavily on funds if the special officers’ rule continues into new financial year of 2019-2020. 

Gram panchayats are already struggling maintain essential services like streetlights as evidenced by many of them failing to clear power bills due to fund crunch. In Srikakulam district alone, 1,100 panchayats are to clear power bills to the tune of Rs 68.40 crore. Against this backdrop, the Central government’s restrictions on Finance Commission grants may push the panchayats into further financial crisis. 

However, the officials say essential services will not be affected by the non-release of Central funds. “Regular works will not be affected at village level in the wake of special officers’ rule. The officers will discharge their duties on par with elected bodies,” said district panchayat officer Bantupalli Koteswara Rao.