Centre blocks fresh Rs 1000 cr grants to Panchayats, ULBs

Sanjeev Pargal
JAMMU, Mar 15: The Centre has refused to release Rs 1000 crore worth grants-Rs 700 crore for Panchayats and Rs 300 crore for Urban Local Bodies (ULBs) to Jammu and Kashmir for not holding elections to two civic bodies despite being asked to do so by Union Ministry of Home Affairs. While the State Government didn’t initiate the process to hold elections to the ULBs (Municipalities), the Panchayat elections were abandoned after an announcement by Chief Minister Mehbooba Mufti that they would be held from February 15.
Official sources told the Excelsior that with Centre Government’s refusal to release grants for Panchayats and Municipalities unless the elected bodies were in place in Jammu and Kashmir, the ULBs have suffered a total loss of Rs 1200 crore as Rs 900 crore worth grants had been blocked during the past few years by the Union Government in the absence of any elected bodies in place for the past eight years now.
The Panchayats got their due grants for full five years from 2011 to 2016 but the grants amounting to Rs 700 crore were blocked by the Government of India once the elected Panchayats ceased to exist as no elections were held to them after 2016.
“The total grants of the ULBs, which the Centre Government has refused to release, have gone up to Rs 1200 crore including Rs 300 crore for the current financial year of 2017-18. The Panchayat grants worth Rs 700 crore have not been released for this year. A total of Rs 1900 cr worth grants now stood blocked by the Centre for the urban and rural civic bodies,” sources said, adding the Centre has made it a point that the “particular grants” would be released only to the elected bodies, whether they are Panchayats or Municipalities.
This practice, according to sources, was aimed at encouraging the State Governments to hold regular elections to Panchayats and ULBs for keeping democracy restored at grass-root level and facilitate developmental works identified by the local representatives of the people.
The State Government was expecting some kind of relief from the Centre in release of blocked ULB grants to help carry out certain specified works. However, the Centre now wants the State Government to hold the ULB elections for securing future grants, which were due to them under 14th Finance Commission Award and other heads.
“About Rs 900 crores worth grants for elected Municipalities since 2010-11, which were due to Jammu and Kashmir either under 13th Finance Commission Award and other categories, were set to be lost with the Government of India declining to release full, or even part payments, citing no election to the Municipalities for past eight years in the State.
Sources said the State Government in its meetings with various representatives of the Central Government had cited “exceptional circumstances” of Jammu and Kashmir in the wake of militancy and other disturbed conditions for not holding elections to the Panchayats and Municipalities seeking release of grants but the Centre appeared to be in no mood to oblige the State.
The Centre Government was reportedly of the view that there has been very specific provision that the grants would be released only to the elected Municipalities and Panchayats and the conditions can’t be relaxed under any circumstances.
While the 14th Finance Commission grants can be re-validated by the Government of India if the Municipal and Panchayat elections are held, rest of the grants have almost been lost with no hope of their re-validation following Centre’s categorical ‘no’ to the State Government, which had projected such a demand giving some reasons for not holding the Municipal elections in the State for the past eight years.
The State Government had also asked for release of pending grants against certain “specified works” for Panchayats and Municipalities, sources said
The Panchayat elections were due in Jammu and Kashmir in June-July 2016 after the completion of five year term of the bodies, which were elected in 2016 during National Conference-Congress coalition Government in 2011. There seems to be no Government proposal in immediate future to hold the Panchayat elections.
The Municipal elections were last held in the State in January 2005 during the tenure of late Mufti Mohammad Sayeed when he headed the PDP-Congress coalition Government. The elected Municipalities had completed their five-year term in March 2010.
With eight years now gone, the successive State Governments including then National Conference-Congress regime headed by then Chief Minister Omar Abdullah and present PDP-BJP coalition Government earlier headed by late Mufti Mohammad Sayeed and now Mehbooba Mufti didn’t hold the elections to the Municipalities.
However, it was Governor NN Vohra, who had decided to hold Municipal elections in April, 2016 when Jammu and Kashmir was under spell of Governor’s Rule from January 7, 2016 to April 3, 2016. Almost all preparations had been made for holding ULB polls in April 2016 but by then PDP-BJP revived their coalition Government and since then no efforts have been made by the State Government to hold elections to the Municipalities excepting announcements.
Chief Minister Mehbooba Mufti had also announced that Panchayat elections in the State from February 15 will be followed by the Urban Local Bodies’ polls. However, the Government has once again deferred both the elections.

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