Representatives of the urban and rural local bodies who called on the 15th Union Finance Commission sought a hike in grant to increase their Own Fund.
The commission headed by N.K. Singh that started consultations in the State had discussions with local body representatives here on Monday.
The Kerala Mayors’ Council urged the commission to hike the professional tax rate by amending Article 246 of the Constitution so that the maximum limit of ₹ 2,500 fixed for those drawing an income of above ₹1.25 lakh could be enhanced.
ADVERTISEMENT
Urban local bodies are performing about 30 mandatory and 100 other functions. Of the total income of ULBs, Own Fund accounts for only 38%.
Establishment expenditure amounts to 41.7%. The commission should hike its grant to bridge the revenue gap. Moreover, with the introduction of Goods and Services Tax, ULBs do not have the revenue from entertainment and advertisement tax, the council felt.
ADVERTISEMENT
ADVERTISEMENT
Lacks Own Fund
ADVERTISEMENT
The District Panchayat President’s Chamber said that the district and block panchayats were the two institutions that were not getting the commission’s grant. This should be rectified. These two tiers did not have any source of income, mainly tax, and hence no Own Fund too.
Backwardness too should be one of the indicators while providing performance grant to local bodies. Rural local bodies should be entrusted with the execution of Central schemes in coastal and tribal areas. The same should be made applicable for Centrally Sponsored Schemes too, the chamber felt.
Senior officers of Local Self-Government Department and commission members also attended the consultations.
A model
Chairman N.K. Singh said the performance of local bodies in the State was a model for others.
He appreciated the coordination between the government and the local bodies.
Commission members Shaktikanta Das, Anoop Singh Lahiri, Ramesh Chand, and secretary Aravind Mehta were among those present.