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Decision on merger of panchayats after receiving report

By Our Correspondent

VIZIANAGARAM, FEB. 27. The Minister for Panchayat Raj, J.C. Diwakar Reddy, on Sunday said that a decision on reorganisation/merger of smaller panchayats would be taken only after the elected representatives currently on a tour of Kerala, Karnataka and West Bengal submit their report to the State Government.

Addressing a press conference here, he said 95 per cent of the panchayats were small and reports of misappropriation of funds or under utilisation of funds by sarpanches had become common. This was mainly due to lack of administrative skills and awareness on effective financial management, he said.

Mr. Reddy said the Government was committed to transfer of powers and grants to panchayats as per the 73rd and 74th Constitutional amendment.

He said the Government had decided to release Rs. 20-Rs. 25 crores every year for five years for various developmental activities in panchayats besides Rs. 100 crores during the next fiscal for conversion of all kutcha roads into bitumen ones and drainages in all panchayats in the State.

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