*If performs better, State to get addl Rs 607 cr
Mohinder Verma
JAMMU, Oct 13: The 14th Finance Commission has recommended whopping Rs 4161.86 crore for the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) of Jammu and Kashmir for five years beginning from 2015-16 and the Union Finance Ministry has forwarded the guidelines for utilization of these grants to the Chief Secretary of the State, B R Sharma with the mention that if the State performs strictly as per the laid down norms it would be able to get additional financial assistance of Rs 607 crore during this period.
Highly placed official sources told EXCELSIOR that Gopal Prasad, Director (Financial Commission Division) in the Department of Expenditure under the Union Finance Ministry vide his communication dated October 8, 2015 has conveyed to the Chief Secretary, B R Sharma, that 14th Finance Commission has recommended Rs 4161.86 crore for the Rural Local Bodies and Urban Local Bodies of Jammu and Kashmir during the period between 2015-16 and 2019-20.
Of this whopping amount, Rs 3117.36 crore have been earmarked for the Rural Local Bodies (Panchayati Raj Institutions) and Rs 1044.51 crore for the Urban Local Bodies (Municipal Corporations, Committees and Councils).
For the current financial year, an amount of Rs 373.96 crore has been earmarked for the Panchayati Raj Institutions. Similarly, an amount of Rs 125.30 crore has been granted for the Urban Local Bodies for the current financial year. However, the State would be able to utilize only Rs 373.96 crore meant for the Rural Local Bodies and funds earmarked for the Urban Local Bodies would remain un-availed in the absence of duly elected Municipal Corporations, Councils and Committees, sources informed.
For the financial years 2016-17, 2017-18, 2018-19 and 2019-20, the Finance Commission has recommended Rs 517.81 crore, Rs 598.29 crore, Rs 692.11 crore and Rs 935.19 crore respectively for the Rural Local Bodies. Similarly, for the Urban Local Bodies, the J&K would be entitled to get Rs 173.30 crore, Rs 200.46 crore, Rs 231.90 crore and Rs 313.35 crore respectively during the period between 2016-17 and 2019-20 provided it succeeds in holding elections to these grass root level democratic institutions in the urban areas, sources disclosed.
The Union Finance Ministry has also conveyed to the Chief Secretary that if Jammu and Kashmir meets the benchmarks laid down by the 14th Finance Commission for both Urban Local Bodies and Rural Local Bodies, the State would be able to get Rs 607.50 crore performance grant, which would be applicable from 2016-17 financial year. Of this, Rs 346.37 crore has been fixed for the Rural Local Bodies and Rs 261.13 crore for the Urban Local Bodies.
“Now, keeping in view the whopping grants earmarked by the 14th Finance Commission it becomes obligatory on the part of the PDP-BJP Coalition Government to hold elections to the Panchayats on time and undo the wrong committed by the previous dispensation by holding elections to the Urban Local Bodies”, sources stressed, adding “even the State Government should ensure establishment of all the three tiers of the PRIs like Block Development Councils and District Planning and Development Boards so that people become party to the developmental activities at grass root level”.
The basic purpose of the grant recommended by the 14th Finance Commission is to strengthen the Urban as well as Rural Local Bodies so that they deliver basic civic services including water supply, sanitation including septic management, sewage and solid waste management, storm water drainage, maintenance of community assets, maintenance of roads, footpaths, street-lighting and other basic services within the functions assigned to them under relevant legislations.
“The grants will be released in two installments in June and October every financial year”, sources said, adding “while 50 per cent of the Basic Grant for the year will be released to the State as the first installment of the year, the remaining Basic Grant and the full Performance Grant for the year is to be released as the second installment for the year. However, the Performance Grant will be released from 2016-17 onwards as recommended by the 14th Finance Commission”, the Union Ministry has conveyed to the Chief Secretary.
It has been specifically mentioned in the guidelines that the State should release the grants to the Urban and Rural Local Bodies within 15 days of it being credited to their account by the Union Government. In case of delay, the State Government would have to release the installment along with the interest at the rate of the Reserve Bank of India to be paid from State’s own funds and a certification to this effect would have to be reflected in the Utilization Certificate to be furnished by the State Government.
“The Finance Ministry has made it clear that release of second and subsequent installments of grants (both Basic and Performance) will be subject to receipt of Utilization Certificate for the previous installment”, sources said, adding “the Ministry has also laid down several pre-requisites for release of grants to local bodies in order to ensure financial regulations and accountability”.
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