MANAGEMENT OF PANCHAYAT fund S.B aya, IAS( Rtd .)

MANAGEMENTOF

PANCHAYAT FUND

S.Baya, IAS(Rtd.)

Mahatma Gandhi- Gram Swaraj

It is a complete republic independent of its neighbours for its own vital wants and yet inter – dependant for many others in which dependence is necessary .

People to deliberate, decide, and act People to govern themselves Control over resources of the village

Article 40 of the Constitution

The State shall take steps to organise village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self – Government

Village republic Village Panchayats

Silent about resources of Panchayat.

Post Independent DevelopmentConstitution

Parliament State

ACT

RULE

EXECUTIVE INSTRUCTIONS

ACT – ODISHA GRAMA PANCHAYAT ACT, 1964 .

RULE – ODISHA GRAMA PANCHAYAT RULES, 1968 .

ODISHA GRAMA PANCHAYAT RULES, 2013(Draft Rule)

73rd Amendment of the Constitution

DEVOLUTION OF POWER 243 G STATE GOVT. TO ENDOW PANCHAYTS WITH POWERS AND AUTHORITY .

FOR PREPARATION OF PLANS FOR ECO DEV AND SOCIAL JUSTICE IMPLEMENTATION OF SCHEMES FOR ECO DEV AND SOCIAL JUSTICE, WITH REFERENCE TO 11th Schedule of Indian Constitution

SUBJECTS TO CONDITIONS

PESASection – 4 :

• Every Grama Sabha to preserve communi- ty resources.• Approve Plans, Programmes and Projects for economic development and social justice• Identification of Beneficiaries.• Grama Sabha to give Certificate of Utilisation of Funds .• Ownership of minor forest produce

Devolution is complete with Transfer of

• FUNCTIONS – 18/29

• FUNCTIONARIES – Adequate at Panchayat Samiti (P.S.)

• FUND – Non Specific

FUND

• Gram Panchayat Fund

• Panchayat Samiti Fund

• Zilla Parishad Fund

Sources of Fund• Own tax and non tax

• External Sources : i. Transfer of Fund by Central Govt. And Finance Commission – 75%

ii. Transfer of Fund by State Govt. – 24.4%

iii.Other Sources – Loan, Donation, grant from UNDP, World Bank etc. – 0.6%

• Grama Panchayat is only competent to collect tax and non-tax revenue.

• Tax and Fees – Section 83 of the OGP Act Example : Conservancy Tax, Water Rate, Lighting Rate, Drainage Tax, Fee on Private Market, Fee on Animals brought to market for sale etc.

• Vehicle Tax – Section 86

• Holding Tax abolished during 1967 . There is contemplation to re-impose .

Non-Tax Revenue

Section 71 – Property

• Ferries

• Markets

• Tanks

• Orchard

• Properties need to be recorded in the name of Grama Panchayat

Collection of Taxes, Fees, Tolls, Rents :

Prescribed in Rule 197 to 204 of OGP Rule

Transfer of Fund by State :

• Devolution – 15% of average own Gross Tax Revenue is devolved in favour of PRIs and Urban Local Bodies

• Assignment – KL, CESS, MFP, ENT. TAX

• G-in-Aid – Salary, sitting fees, Honorarium

• Budgeted provision – Gopabandhu Gramin Yojana(GGY), Mo Kudia

Transfer of Fund by Central Govt. :

• Different Ministries Release Fund

• Centrally sponsored scheme tagged with matching share – MGNREGS, NRLM

• Central scheme – BRGF

• Finance Commission Grant.

Finance Commission Grant :

• Population - 50

• Area - 10

• Distance from per capita Income - 10

• Devolution of Power - 15

• SC/ST Population - 10

• Utilization of previous Grants - 5 • FC Grant – i. Basic Grant ii. Performance Grant iii. Special area Grant

• Receipt and Expenditure

• Revenue

• Capital

Statutory Provision

Section 19 – Power and Function of Sarpanch

Section 122 – Power and function of Executive Officer

Rule 73 to 89 of the draft Rule relate to receipt and expenditure

Rules Governing Fund

1. The Odisha Grama Panchayat Rules, 1968

2. OGFR

3. Delegation of Financial Power Rule

Road Ahead

1. E- Accounting

2. Payment through Account transfer

3. Social Audit

THANKS