Hyderabad: The 15th Finance Commission has indicated to state governments across the country that it will change its policy with regard to releasing grants to local bodies.
Heeding the representations of various states, including Telangana, the 15th Finance Commission has decided to release direct grants not only to the gram panchayats but also to zilla parishads in the states.
The 14th Finance Commission had released funds only to the gram panchayats due to which the zilla and mandal parishads had to deal with a funds crisis.
Soon after constitution of the 15th Finance Commission, Karimnagar MP B. Vinod Kumar had brought to the notice of Mr N.K Singh, chairman of the commission, the existence of the three-tier panchayat raj system in the state and said that releasing funds only to gram panchayats had put a financial burden on the state exchequer.
He submitted that the state government was over burdened with the implementation of the Goods & Services Tax and not releasing grants to the mandal and zilla parishads would further burden the exchequer.
According to the 15th Finance Commission, it would likely release Rs 10 lakh crore in grants to panchayat raj institutions across the country between 2019 and 2024. After detailed deliberations with the authorities of the departments concerned and state governments, the commission in principle has agreed to release the grants to zilla and mandal parishads of Telangana.
