Good news has come for the Gram Panchayats of Himachal Pradesh. Under the 16th Finance Commission, the state is going to get a grant amount of Rs 240.50 crore as the first installment. This time, important changes have been made in the system of grant distribution by the Centre, due to which thousands of Panchayats of the state will get more financial assistance than before.
Panchayats will have more money available than before
Actually, this time the biggest change has been made in the part of Panchayats. Whereas earlier Gram Panchayats used to get 70 percent of the total grant, now it has been increased to 80 percent. With this, 3,758 gram panchayats of Himachal Pradesh will have more funds available for development works than before. The grant will be distributed on the basis of population and geographical area of the Panchayats.
In comparison to the 15th Finance Commission, the first installment received this time has increased by about Rs 103 crore. This additional amount will help Panchayats to accelerate local development plans. Along with this, the share of District Councils and Panchayat Samitis has also been rebalanced, so that Gram Panchayats can get more financial powers.
Amount will be released in two categories
After the recent completion of Panchayat elections, new public representatives have taken charge in all the Panchayats of the state. At such a time, the pace of development work is expected to speed up with additional financial assistance. Panchayats will be able to quickly implement various schemes as per local needs.
The amount received from the 16th Finance Commission will be released in two categories. The first will be a TIDE grant, which can be used only on scheduled works like schemes like drinking water system, sanitation, solid and liquid waste management. The second will be an untied grant, which Panchayats can spend as per their local needs and priorities.
Development of basic facilities will gain momentum
This grant is likely to give impetus to strengthening of drinking water schemes in villages, repair and construction of roads, installation of street lights, maintenance of community buildings, cleanliness drives and development of other basic facilities. This will provide direct benefits to people living in rural areas and the efficiency of Panchayats will also increase.
Experts believe that the decision to increase the share of Panchayats is an important step towards strengthening rural self-governance. This will lead to better planning of development schemes at the local level and their timely implementation will also be possible. In the times to come, this additional financial assistance may create new opportunities for rural development.