Date:09/07/2008 URL: http://www.thehindu.com/2008/07/09/stories/2008070954390500.htm

Tamil Nadu - Chennai

Village panchayats to receive more funds

T. Ramakrishnan

State Planning Commission wants to increase the allocation by 30 per cent during the 11th Plan period

CHENNAI: Village panchayats will get at least 30 per cent more funds during the 11th Plan period (2007-2012) than the allocation in the previous Plan period (2002-2007).

This is one of the prescriptions of the State Planning Commission in the 11th Plan document. Among other prescriptions are employment to 30 per cent of households registered under the Rural Employment Guarantee Scheme, increasing the participation of people in gram sabha meetings by 20 per cent, dynamic online data transfer, at least in select programmes, from block to district and establishment of data bank of all self-help groups.

The Commission also stated that at the end of the Plan period, every village panchayat should be provided with at least one drinking water source, one pucca school building with electricity supply, a library, a village sports centre, streetlights and Internet connectivity.

As for improving the flow of funds, Since 2007-2008, the State Government has been allotting the XII Finance Commission’s entire grant (for improving water supply, sanitation and streetlights) only to village panchayats that are being given Rs. 174 crore a year. Earlier, the grant was shared between village panchayats and panchayat unions in the ratio of 80:20.

The State Planning Commission’s document said the pattern of devolution was proposed to be modified slightly, with more money going to village panchayats. The 9 per cent allocation would be divided between rural local bodies and urban local bodies in the ratio of 58:42. The allocation for rural local bodies was being distributed among village panchayats, panchayat unions and district panchayats in the revised ratio of 60:32:8 during the 11th Plan period. That means village panchayats will get nearly Rs. 480 crore, panchayat unions Rs. 256 crore and district panchayats Rs. 64 crore.

The document said the devolution would be progressively increased to 10 per cent over the Plan period. The rise of one per cent will mean an increase of Rs. 360 crore over the previous allocation of Rs. 1,225 crore. Renovation and repairs will be carried in all schools maintained by rural local bodies. To improve study environment, the schools will be given electricity connections. A sum of Rs. 675 crore has been earmarked for this purpose from the devolutionary grant to local bodies. To encourage public-private partnership, the State proposes to introduce an award scheme for corporate houses that take up social responsibility activities.

Under the Rural Employment Guarantee Scheme, the expenditure over the Plan period will be around Rs. 850 crore, with a generation of 750 lakh mandays. As for sanitation, a multimedia campaign will be launched this year to change the sanitation practices of rural people and generate demand for individual household toilets.

An outlay of Rs.13,467 crore has been proposed for rural development. The State’s share will be Rs. 10,241.28 crore and the Centre will chip in with Rs. 3,226.05 crore. In the 10th Plan period, the expenditure stood at Rs. 6,242.41 crore against the outlay of Rs. 5,540.46 crore.