Karnataka CM to Boost Gram Panchayat Finances
CM DK Shivakumar announces major reforms to strengthen Gram Panchayat finances and decentralised governance in Karnataka.
In a major move to bolster grassroots administration, Karnataka Chief Minister DK Shivakumar has announced a series of strategic measures aimed at improving the financial health of Gram Panchayats and strengthening the state's decentralised governance framework.
Presiding over a meeting of the Karnataka State Decentralisation Planning and Development Committee at his Krishna home office, the Chief Minister laid out a comprehensive roadmap to empower local bodies and ensure they have the resources necessary to serve their communities effectively.
New Committee to Review Finance Commission Recommendations
To turn policy into action, Shivakumar revealed that a specialized committee, headed by the Rural Development Minister, will be established. This committee is tasked with examining the Fifth State Finance Commission report to identify specific recommendations regarding administrative reforms and financial sharing that can be implemented immediately.
Highlighting the current scale of fund distribution, the Chief Minister noted that significant amounts have already been allocated to local governance tiers:
- Gram Panchayats: Rs 1,261 crore
- Taluk Panchayats: Rs 557 crore
- Zilla Panchayats: Rs 183 crore
Empowering Urban Local Bodies and Ward Sabhas
The reform agenda extends beyond rural areas. Shivakumar emphasized that urban local bodies must function more effectively, strictly adhering to the provisions of the 74th Constitutional Amendment. To achieve this, the state plans to consult experts from the National Law College to draft suitable amendments to relevant Acts.
In a bid to bring democratic participation to cities, the Chief Minister proposed that urban projects should be formulated and executed through Ward Sabhas, mirroring the successful model of Gram Sabhas used in villages.
Grassroots Demands via 'Janara Yojane'
The Chief Minister also highlighted the 'Janara Yojane' initiative, a flagship programme announced in the state budget. The goal of this initiative is to capture the specific demands of citizens at the grassroots level and integrate them directly into the state budget. To ensure seamless execution, the Rural and Urban Development departments have been instructed to develop specialized software and issue clear guidelines for the programme.
Addressing Revenue Gaps and Tax Sharing
One of the most critical issues discussed was the decline in Gram Panchayat revenues. Shivakumar pointed out that income levels dropped after the Karnataka Industrial Areas Development Board (KIADB) reclaimed the power to levy taxes on industries from the Panchayats.
However, he reminded officials that the existing Act mandates that 30 per cent of the property tax collected by the KIADB must be shared with the Gram Panchayats. He has directed officials to provide a transparent and complete breakdown of all taxes collected by the authority and the exact amounts shared with local bodies to date.
Additional Administrative Reforms
The Chief Minister's directive included several other key administrative mandates:
- Project Management Units: Funds will be provided to establish these units at both district and taluk levels.
- Regular Oversight: District Planning Committees at the district, taluk, and village levels must meet every three months and submit progress reports.
- Boundary Mapping: Officials must expedite the fixing of Grama Thana boundaries using data from the Central Government's SVAMITVA scheme.
- GST Revenue: The state intends to submit a formal proposal to the GST Council to secure a dedicated share of GST revenue for both rural and urban local bodies.
- Responsibility Maps: All government departments must prepare and submit "responsibility maps" that clearly outline their specific roles in supporting Gram, Taluk, and Zilla Panchayats.
Furthermore, the Chief Minister indicated that a proposal regarding the establishment of the Karnataka Panchayat Administrative Service would be sought from the concerned department minister.