<p>The 5th State Finance Commission, in its report tabled in the Assembly on Friday, recommended that the state government should increase devolution to local bodies, Panchayat Raj institutions (PRIs) and urban local bodies (ULBs) including the Bruhat Bengaluru Mahanagara Palike (BBMP).</p>.<p>It has also asked the state government and state election commission to take immediate steps to hold elections to taluk and zilla panchayats and the BBMP. The delay in holding elections to these bodies has forced the Central Finance Commission (CFC) to put on hold Rs 2,100 crore grants. </p>.<p>In its recommendations, the Commission took a dim view about the state government not holding elections to local bodies. “It is relevant to mention that neither the Constitution nor the provisions of Karnataka Gram Swaraj and Panchayat Raj Act provides any scope to extend the term of any Panchayat Raj Institutions (PRI) or ULBs by appointing administrators after the expiry of five-year term.</p>.<p>Although a provision exists to appoint administrators when PRIs are dissolved prior to completion of their five-year term but with the condition of constituting this body within 6 months. But, there are several zilla and taluk panchayats and BBMP which have not been duly constituted. If elections are not held within CFC’s award period, then the state will not be able to secure Rs 2,100 crore grants from the commission,” the report underscored.</p>.<p>The Commission said that though Non-loan net own revenue receipts (NLNORR) and devolution of funds between 2018-22 increased for PRIs but in respect to ULBs it has come down to 10.4 per cent from 12 per cent recommended by 4th SFC, which is much below the accepted devolution. “It appears that by depriving the ULBs of funds, the government has curtailed the funds for basic municipal services which is reflected in the demands and concerns of ULBs,” the report slammed.</p>.<p>Going by this, the 5th SFC has recommended a fund-sharing formula of 51:49 against the existing 52:48. Out of 49 per cent for all Local Bodies, 35 per cent is for PRIs and 13 per cent to all ULBs but BBMP will get an additional 1 per cent extra (14 per cent). “With rapidly changing urban landscape owing to migration and other factors, the demand for basic municipal services such as water supply, sanitary, streetlight and infrastructure has necessitated higher allocation for ULBs including BBMP,” the report explained. </p>.<p>According to the report, the BBMP did not receive any additional amount of 1 per cent of NLNORR under the 4th SFC. Even the full share of devolution to ULBs was not released by the government. </p>
<p>The 5th State Finance Commission, in its report tabled in the Assembly on Friday, recommended that the state government should increase devolution to local bodies, Panchayat Raj institutions (PRIs) and urban local bodies (ULBs) including the Bruhat Bengaluru Mahanagara Palike (BBMP).</p>.<p>It has also asked the state government and state election commission to take immediate steps to hold elections to taluk and zilla panchayats and the BBMP. The delay in holding elections to these bodies has forced the Central Finance Commission (CFC) to put on hold Rs 2,100 crore grants. </p>.<p>In its recommendations, the Commission took a dim view about the state government not holding elections to local bodies. “It is relevant to mention that neither the Constitution nor the provisions of Karnataka Gram Swaraj and Panchayat Raj Act provides any scope to extend the term of any Panchayat Raj Institutions (PRI) or ULBs by appointing administrators after the expiry of five-year term.</p>.<p>Although a provision exists to appoint administrators when PRIs are dissolved prior to completion of their five-year term but with the condition of constituting this body within 6 months. But, there are several zilla and taluk panchayats and BBMP which have not been duly constituted. If elections are not held within CFC’s award period, then the state will not be able to secure Rs 2,100 crore grants from the commission,” the report underscored.</p>.<p>The Commission said that though Non-loan net own revenue receipts (NLNORR) and devolution of funds between 2018-22 increased for PRIs but in respect to ULBs it has come down to 10.4 per cent from 12 per cent recommended by 4th SFC, which is much below the accepted devolution. “It appears that by depriving the ULBs of funds, the government has curtailed the funds for basic municipal services which is reflected in the demands and concerns of ULBs,” the report slammed.</p>.<p>Going by this, the 5th SFC has recommended a fund-sharing formula of 51:49 against the existing 52:48. Out of 49 per cent for all Local Bodies, 35 per cent is for PRIs and 13 per cent to all ULBs but BBMP will get an additional 1 per cent extra (14 per cent). “With rapidly changing urban landscape owing to migration and other factors, the demand for basic municipal services such as water supply, sanitary, streetlight and infrastructure has necessitated higher allocation for ULBs including BBMP,” the report explained. </p>.<p>According to the report, the BBMP did not receive any additional amount of 1 per cent of NLNORR under the 4th SFC. Even the full share of devolution to ULBs was not released by the government. </p>
