16th Finance Commission questions Jharkhand Govt on delay in grants to local bodies

THE JHARKHAND STORY DESK

Ranchi, May 30: The 16th Finance Commission has asked why grants to local bodies in Jharkhand have not been released for the past two years. The question arose during a meeting where representatives from Panchayati Raj institutions raised concerns over the prolonged fund freeze.

They also complained about the shortage of sand for constructing houses under the Abua Awas Yojana and demanded that the right to manage sand resources be handed over to the panchayats.

Key Issues Raised in the Meeting

The meeting was held between the 16th Finance Commission, representatives of local bodies, and the State Finance Commission.

Among the attendees were the Ranchi Zila Parishad Chairperson, various mukhiyas (village heads), and officials from urban local bodies of Hazaribagh, Khunti, Lohardaga, and Gumla. However, notably, there was no representation from the state’s Urban Development and Panchayati Raj departments.

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A key point of discussion was the need to revise the structure of grant distribution. Under the 15th Finance Commission, 60% of grants are tied funds (to be used for specific purposes), while 40% are untied.

Participants argued that the limited share of untied funds hampers local development works like road and drainage construction. They also highlighted that no grant has been received in the past two years, to which the Commission responded by urging them to seek an explanation from their own state government.

Concerns over Fund Disparity and Sand Supply

The Chairperson of the Ranchi Zila Parishad pointed out disparities in fund allocation, stating that MLAs receive significantly more development funds than the Parishad, which creates difficulties. Furthermore, MLAs receive pensions while elected members of Zila Parishads do not, despite both being elected representatives.

A village head also complained about the shortage of sand during Abua Awas construction and demanded that panchayats be given control over sand resources.

State Finance Commission’s Update

The State Finance Commission informed the gathering that it had submitted its report and that the same would be tabled in the state assembly. The commission has recommended that urban local bodies and Panchayati Raj institutions be given a share in the state’s revenue.

To implement this, the state government has formed a committee under the Development Commissioner to examine these recommendations.

However, it was also noted that despite the recommendations, the state government has yet to release funds to urban local bodies and Panchayati Raj institutions.