Karnataka will strengthen finances of local bodies: Chief Minister D.K. Shivakumar
Government to frame guidelines for ‘People’s Plan’; proposes ward-level meetings and GST revenue share for local bodies
Chief Minister D.K. Shivakumar announced on Wednesday that the Karnataka government will take measures to bolster the financial status of local bodies, including gram panchayats, taluk panchayats, and zilla panchayats, in order to bolster decentralised governance. A committee, headed by the Rural Development and Panchayat Raj Minister, will be established to assess the recommendations from the fifth State Finance Commission on fund allocation and administrative reforms, aiming to implement viable suggestions and present a report.
The government has already allocated ₹1,261 crore to gram panchayats, ₹557 crore to taluk panchayats, and ₹183 crore to zilla panchayats based on the recommendations from the commission. Efforts will also be made to enhance the functioning of urban local bodies, adhering to the principles of the 74th Constitutional Amendment. Experts from the National Law School of India University will be consulted regarding potential amendments to relevant laws.
Urban local bodies are encouraged to involve ward sabhas in planning and executing development projects, similar to gram sabhas. District, taluk, and village-level planning committees have been established and are mandated to convene monthly and submit reports. Departments are tasked with developing guidelines for implementing the 'People's Plan' outlined in the State Budget, which aims to integrate grassroots needs into the state budget, and to create software and allocate funds for establishing planning management units at district and taluk levels.
The government will propose to the GST Council to share in GST revenue with rural and urban local bodies. In addition, a proposal for the establishment of the Karnataka Panchayat Administrative Service will be submitted. The demarcation of gram thana boundaries using data from the Centre's SVAMITVA scheme will be expedited, involving coordination between Panchayat Raj and Revenue departments.
The government has acknowledged the revenue loss faced by gram panchayats due to the Karnataka Industrial Areas Development Board (KIADB) acquiring their power to levy taxes on industries. Officials are instructed to submit information regarding the total tax collected by the authority and the amount distributed to gram panchayats.
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