Union Minister Nihal Chand pitches for empowering local bodies economically

NEW DELHI: A two-day workshop on giving panchayats tax and non-tax powers and changing functioning of State Finance Commissions (SFCs) got underway here today with Union Minister Nihal Chand making a strong pitch for empowering local bodies economically to strengthen India.

"Majority of Indian population stays in rural areas. Hence, Prime Minister ( Narendra Modi) had announced to transfer funds directly to gram panchayats.

"For the first time, over two-lakh crore rupees have been announced for gram panchayats. Huge funds will go to villages and a sarpanch can use the same for developments of the villages," Minister of State for Panchayati Raj Nihal Chand said during the inaugural session of the workshop themed 'Decentralisation and Role of State Finance Commissions'.

He maintained that India will be "strengthened" only when villages are empowered and urged attendees to figure out ways during the conference to ensure that funds meant for panchayats reach them properly.

Chairpersons and members of all functional SFCs, secretaries of Panchayati Raj and Finance Departments from states and eminent national and international experts on fiscal decentralisation and devolution to local governments are taking part in the workshop.

Chand called for a practical fiscal decentralisaiton by SFCs while distributing resources between state governments and local bodies, a statement issued by the Ministry said.

"The primary emphasis will be on provision of basic services like rural infrastructure, sewage, sanitation and water supply," he said.

The Minister said the Finance Commission has recommended distribution of grants to states for local bodies using 2011 population data with weight of 90 per cent and area with weight of 10 per cent.

He informed there are over 2.6 lakh panchayats in India.

Panchayati Raj Ministry Secretary S M Vijayanand, who also attended the event, said the Centre will implement the 14th Finance Commission (2015-20) recommendations "seriously" and said the SFCs and Union Finance Commission ( UFC) should work alike.

Ex-members of UFC have also been invited to share ideas and experiences of national and international best practices and promote cross-learning across states.

The 73rd and 74th amendments to Constitution have provided constitutional status to panchayats and municipalities to function as local self-government institutions.

The workshop is also likely to discuss changes that are required in the functioning of SFCs to meet new challenges.