2024-11-14 10:21:00
At the conclave, which aims at facilitating crucial deliberations on addressing systemic challenges, ensuring timely constitution of State Finance Commissions, implementation of recommendations and strengthening institutional mechanisms to ensure a smooth flow of funds to the Panchayati Raj Institutions (PRIs), fostering financial autonomy and self-reliance among the Panchayats was among the topics in focus.
The issue of Panchayat finances, including devolution of funds, functions and functionaries, along with strategies to enhance local revenue sources were among the key issues.
Panagariya said that local bodies should look at raising their own resources as well.
“From the view point of service provision it is important to raise some own resources also… when citizens pay taxes, they are also aware of services that ought to be rendered to them,” he said.
“It is also the logic of devolution of the functions at local levels. Locals know what they need and want. That knowledge will convert into a more activist kind of demand.” Panagariya said it will also mobilise the citizens. “In some way efforts should be made by the panchayats and urban local bodies to raise at least some part of their revenues from their own jurisdiction. That is an important way to mobilise citizenry in terms of its expectations and demands,” he said.
Meanwhile, Panchayati Raj Secretary Vivek Bharadwaj said the conclave brings together stakeholders so that there is an integration in thought and action.
“For the 2.5 lakh Panchayats and people, the Finance Commission is responsible for devolution of resources. We have been trying that there should be an integration of action and thought between the central and state finance commissions. Through this conclave, all stakeholders have come on one platform,” he said.
The conclave being organised by the Panchayati Raj Ministry brings together key representatives from the 16th Finance Commission, the Ministry of Panchayati Raj, the Ministry of Rural Development, the Ministry of Finance, the Ministry of Housing and Urban Affairs, as well as eminent experts and representatives from the State Finance Commissions and other relevant institutions.
1731614371
#Local #bodies #raising #resources #Arvind #Panagariya
What are the key benefits of financial autonomy for local bodies as discussed by Dr. Panagariya?
**Interview with Arvind Panagariya, Chairman of the 16th Finance Commission**
**Editor:** Good afternoon, Dr. Panagariya. Thank you for joining us today. You recently spoke at the “Devolution to Development” conclave organized by the Ministry of Panchayati Raj, where you emphasized the need for local bodies to raise their own resources. Can you elaborate on why this is crucial for both urban and rural local bodies?
**Panagariya:** Thank you for having me. Yes, it’s essential for both urban and rural local bodies to develop their own revenue generation strategies. When local bodies become financially autonomous, they not only enhance service delivery but also empower citizens. When people pay taxes, they become stakeholders in their community, with clearer expectations of the services they should receive.
**Editor:** That’s an interesting perspective. You mentioned a convergence in demands between urban and rural local bodies. Can you explain what that convergence looks like?
**Panagariya:** Certainly. Historically, urban and rural local bodies had distinct functions and challenges. However, we are seeing a blending of issues, particularly in service delivery, infrastructure development, and local governance. Both urban and rural areas face similar demands for accountability, efficiency, and modernization of services. This convergence suggests that collaborative solutions could effectively address the challenges both realms face.
**Editor:** At the conclave, financial autonomy was a key topic. What specific strategies can local bodies adopt to enhance their revenue generation?
**Panagariya:** Local bodies can explore several avenues to enhance their revenue. They could consider implementing user fees for specific services, diversifying local taxes, and promoting community initiatives that generate income. Additionally, fostering partnerships with private entities and exploring grants from state and central governments can also aid in generating funds.
**Editor:** You also highlighted the importance of timely constitution of State Finance Commissions. How does this play a role in the overall financial health of local bodies?
**Panagariya:** The timely establishment of State Finance Commissions is critical to ensure an effective flow of funds. It provides a framework for the devolution of financial resources, enabling local bodies to plan and execute their functions properly. Without this process, many local bodies face uncertainty and delays, which can hinder their ability to serve their communities effectively.
**Editor:** Thank you, Dr. Panagariya, for sharing your insights. It’s clear that strengthening local governance and financial autonomy is crucial for the development of our communities.
**Panagariya:** Thank you for the opportunity to discuss these important issues. Strengthening local bodies is vital for both economic growth and enhanced citizen engagement in governance.
