*First installment falling due in June, 2nd in Oct
Mohinder Verma
JAMMU, Mar 25: People’s Democratic Party-Bharatiya Janata Party Coalition Government will have to rush through the elections to Urban Local Bodies in order to avail full financial assistance recommended by the 14th Finance Commission for a period of five years.
The elections to Urban Local Bodies (ULBs) were last held in the year 2005 and their five-year term expired in 2010. Thereafter, no attention was ever paid towards holding fresh elections to these grass root level democratic institutions in urban areas of the State.
Due to non-holding of elections, the State lost Central assistance worth several hundred crores of rupees as the funds for both Urban and Rural Local Bodies are conditional and unless these stipulations are fully met, the Union Government doesn’t provide funds.
Official sources told EXCELSIOR that 14th Finance Commission has recommended award of Rs 4769.37 crore to the Jammu and Kashmir for the local self Government for a period of five years from 2015-16 financial year beginning from April 1, 2015. Of the total award, an amount of Rs 3463.73 crore has been recommended for Rural Local Bodies (Panchayats) and Rs 1305.64 crore for the Urban Local Bodies (Municipal Corporations, Councils and Committees).
The 14th Finance Commission has laid down conditions to be followed by the State Government in order to avail the grant for local bodies. The foremost requirement for getting this assistance is that there should be elected local bodies. Though Rural Local Bodies (Panchayats are in place), the elected Urban Local Bodies would have to be established as early as possible as the Award period is beginning from April 1, 2015.
According to the conditions, the Gram Panchayats shall have audited annual accounts relating to year not earlier than two years preceding and there shall be improvement in own revenues that means the local bodies would have to raise funds by way of imposing local taxes.
For availing the assistance, the duly elected Urban Local Bodies will have to conduct survey and publish service level bench marks for basic service, sources said while disclosing that 14th Finance Commission has categorically stated that the local bodies shall spend grants only on assigned basic services.”The weightage for distribution of grants for local bodies has been fixed as 90% to population (2011 census) and 10% of the area”, sources informed.
“Since Government of India will release grants in two installments—one in June and another in October every year, the J&K Government would have to ensure duly elected Urban Local Bodies well before the month of June in order to avail the first installment”, sources said.
Stating that Government has been left with no other option but to rush through the ULB elections, they said, “this also becomes imperative in view of the lengthy process involved in establishing duly elected Municipal Corporations, Committee and Councils”. Moreover, before holding elections the Government is also required to take decision whether it would go for delimitation of wards keeping in view the expansion of urban areas and demand of the people from the extended areas of Urban Local Bodies, they added.
Notwithstanding the urgency to put in place duly elected Urban Local Bodies, the Government has yet not finalized any schedule for elections. “The matter is under submission to the General Administration Department”, said Deputy Chief Minister, Dr Nirmal Kumar Singh, who is also holding the portfolio of Housing and Urban Development Department, in the Legislative Assembly two days back.
In response to a question, sources said that 14th Finance Commission has also recommended Rs 59666 crore Revenue Deficit Grant, Rs 1268 crore for Disaster Management and Rs 60400 crore as share in Central Taxes. However, these are unconditional grants and there will be free flow of the funds.
They informed that 14th Finance Commission has also laid roadmap for fiscal consolidation of the State. For fiscal indicators– Debt/GSDP, Fiscal Deficit/GSDP, Tax/GSDP and Interest/RR, the Commission has fixed percentages for five years beginning from 2015-16 financial year starting from April 1, 2015.
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