Each Halqa to contribute to DDC, BDF Fund on annual basis
Powers defined for approval to utilize Own Source Revenue
Mohinder Verma
JAMMU, July 25: While issuing guidelines for incurring expenditure from Own Source Revenue, the Government has directed the Panchayats to maintain separate account for each scheme under double entry system to ensure transparency in the utilization of funds. Moreover, these grass root level democratic institutions have been told to contribute five percent and twenty percent of Own Source Revenue to the District Development Council and Block Development Council Fund respectively on annual basis.
The Section 13 of the J&K Panchayati Raj Act, 1989 gives the detail of the assets which constitute the property of a Halqa Panchayat and from which the Halqa Panchayat can earn revenue. Similarly, Section 14 of the Act provides that Panchayat shall have a fund comprising among other things user charges, fees levied by the Panchayat, proceeds from the property and enterprises run by Panchayat, court fees, fines and compensation which constitute Own Source Revenue.
In the absence of clear guidelines the Panchayats were finding it difficult to incur expenditure from Own Source Revenue as such the Government in exercise of the powers conferred by Section 14 of the Act has notified the procedure for operating the Own Source Revenue of Halqa Panchayat Fund by Panchayats, Block Development Councils and District Development Councils.
The Government has directed that each Panchayat shall maintain a separate account for each scheme under which funds are transferred to it and also maintain separate books of accounts including cash book for each scheme under double entry system of accounts.
“There shall be a separate account of Own Source Revenue Fund and its books of accounts shall be maintained separately. Transfer from UT Government or Central Government shall not be deposited in this account under any circumstances”, read the guidelines.
While utilizing the funds, the Panchayats will accord priority to SC/ST, women/minority welfare schemes and income enhancing and livelihood support activities like agriculture, horticulture, animal and sheep husbandry and fisheries etc; addressing critical gaps identified during Mission Antyodaya Survey; repair of community assets and any serious health issue facing the Panchayat; critical gap funding for different Centrally Sponsored Schemes and UT Government Schemes where funds are inadequate for completion of a project etc.
Stating that Government may notify priority areas from time to time for incurring expenditure out of the Own Source Revenue Fund, the guidelines said that Panchayats shall exercise all financial prudence and follow General Financial Rules while spending the Own Source Revenue Fund and under no circumstances shall the private assets be repaired/constructed out of Own Source Revenue Fund. Similarly, there shall be no donation, charity work and social assistance out of the Own Source Revenue Fund.
The District Development Council has been delegated power to accord administrative approval for utilization of fund up to Rs one crore while as Block Development Council has been given power up to Rs 20 lakh and Halqa Panchayat for up to Rs 5 lakh subject to the condition that funds are available, General Financial Rules are followed and there shall be no distinction between capital and revenue expenditure.
As far as technical sanction is concerned, Assistant Executive Engineer has been delegated power up to Rs 5 lakh, Assistant Engineer up to Rs 3 lakh and Junior Engineer up to Rs one lakh subject to the condition that estimated cost technically sanctioned doesn’t exceed the corresponding administratively approved cost and work has been approved in Capex/Revenue component of budget and funds are available.
It has been mentioned in the guidelines that Halqa Panchayat will frame a Social Audit Committee in presence of the Inspector Panchayat or any other official nominated by the Block Development Council for conduct of Social Audit of the activities being undertaken out of Own Source Revenue Fund. Moreover, every Halqa Panchayat shall contribute five percent and twenty percent of its Own Source Revenue to the District Development Council Fund and Block Development Council Fund respectively, on annual basis.
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