The Hon’ble Chairman, Telangana State Finance Commission held a meeting convened by Member Secretary, SFC and discussed about Finances of the PRIs and State Finances as well. The Meeting was also attended by Principal Secretary, Finance, Principal Secretary PR and Commissioner Panchayat Raj and other Members of the Commission to discuss about the CESS Report Findings and Local Bodies Finances.
The CESS was entrusted with the study of investigating into the local bodies (PRIs) financial resources and the ways to strengthen them. As a part of the study, CESS visited 5 districts (Adilabad, Karimnagar, Warangal, Nalgonda and Ranga Reddy) and 10 Mandals and 20 Gram Panchayats and 8 Thandas and it made a thorough study of the finances of the local bodies at all the three levels.
The basic conclusions of the study are listed below:
a) Release of various grants to the PRIs (during 2013-14 to 2017-18) shows that SFC grants are not substantial (19.60 crores in 2014-15 and in the year 2017-18 – 28.20 crores) and the same is the case with percapita grant (2014-15 – 7.12 crores and 2017-18 – 15.60 crores) and seigniorage grant.
b) OSR trends show an increasing curve, thanks to the efforts made by the Government. (294 crores in 2014-15 and in 2017-18 333 crores)
c) 14th Finance Commission grants see quantum jump to GPs, (928 crores in 2017-18).
d) There is steady increase in the Property Tax (of the OSR) of GPs (From 102 crores in the year 2010-11 to nearly 400 crores in the year 2017-18).
e) Other taxes are not found increasing adequately.
f) Regarding non-tax sources Fees / User charges and Auctions and Fees are the major sources. There is still large potential to tap from various sources.
Position of Own Revenues to Total Revenues (20 GPs):
g) It was reiterated that the percentage of Own Revenues to the Total Revenues of the GPs is low in some of districts. There is necessity to improve revenue collections like Professional Tax,House Tax, Taxes from Auctions.
h) Devolution of Functions (Functions, Funds and Functionaries) need to be improved in Telangana to achieve the parity with Southern States.
The G.Rajesham Goud,Chairman,State Finance Commission welcomed and thanked the Hon’ble Chief Minister Sri K.Chandra Shekar Rao for his kind gesture of announcement of huge fund transfer to PRIs & Urban Local bodies even more than the recommendations of State Finance Commission’s Interim report and (Central) 14th Finance Commission.
