Jaipur: Development work carried out by Panceshat Raj Institutions (PRI) and Urban Local Agencies (ULB) are likely to be pegged back with the sixth sixth financial commission (SFC) which recommends less funds compared to the 2015-20 period.
In a temporary report, the financial panel has proposed 6.75% of the state net tax for the state for PRI and ULB to 7.18% during 2015-20.
The Commission has quoted the concern of the Ministry of Finance at a decrease in tax revenues due to covid pandemic and increased income expenditure on pensions of social security, salary and wages, increasing interest payments and higher subsidies and grants.
The temporary report is for 2020-21 and 2021-22 because the Commission cannot consult with ministers such as rural development, Pancayati Raj, local and financial independent government.
The government cannot release funds without the recommendation of the commission.
In accordance with the temporary data 20-21 and budget estimates for 2021-22, government tax revenues themselves pegged at RS 57611.
42 Crore and RS 87703.36 Crore respectively.
At 6.75% tax devolution, PRI and ULB will get Rs 3,888.77 Crore at 2020-21 and RS 5919.98 Crore at 2021-22.
The funds are generally used for drinking water, the creation of water reservoirs, providing services through e-governance, Indira Rasoi Yojana, LED lights, youth development, Pradhanmantri Watch Yojana-Graman, carry out the initiative for Swachh Bharat Abhiyan, sanitation of schools, and plantations among others .
This year, funds will also be used in steps to contain the spread of covid.
The Ministry of Finance has communicated with a commission that describes the pressure in mobilizing tax income and improves the rate of tax on the PRI and ULBS.
The growth of the acceptance of state revenue fell from 16.77% in 2017-19 to 1.68% in 2019-20.
Because of changes in the pattern of sharing from 2015-16 of the schemes sponsored centrally than 100% or 75:25 to 60:40 or 50:40 between the center and the state, there is a reduction in revenue to the state of the ledge of the liability of debt obligations is subject to the state fee of Rs 5,000 Crore every year.
Because Covid, additional expenditures for medical and assistance to affected families have caused extra financial burden on state finances.
Because of the pandemic, the Commission cannot hold discussions with department ministers such as rural development, Pancayati Raj, local and financial independent government and also conduct an assessment in various layers of this department to present this five-year plan.
Because state government funds can be released after the recommendation of the Commission, a temporary report was searched by the government for two years (2020-21 and 2021-22).
Raj: Funds for Pancayati Raj & Minang Ulbs
