ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Panchayati Raj : Unnecessary Confusion

Out of plan funds devolved to panchayati raj institutions (PRIs) in Kerala some amounts have been found to have been deposited with certain government institutions for works which the PRIs want them to take up in their areas. These institutions are government bodies such as the electricity board or the water authority. The PRIs in Kerala were doing this under direction from the state government. Now the making of these deposits has been objected to as a financial irregularity by the audit department.

Impact of Grants on Tax Effort of Local Government

that higher grants are given to more populous, and hence, more needy panchayats. Impact of Grants on Tax That is as it should be and there is certainly nothing wrong with such a design. The negative relationship between un- Effort of Local Government GR An important prerequisite of fiscal empowerment of local bodies is to design and implement a formula-based, equitable and efficient transfer system. Unfortunately, despite the constitutional amendment to empower rural local bodies, designing an appropriate fiscal transfer system has not received the attention it deserves. The reason for this has to be found in the paucity of systematic analysis of the impact of the transfers from states to local bodies. From this perspective, the study by Rajaraman and Vashishta (RV) on

Food-For-Work : Role for Panchayats

Two questions need to be sorted out with regard to the organisation of the food-for-work programme announced by the centre. One, financial and the other, administrative. Obviously the central government has made up its mind to bear the full cost of releasing food stocks for the programme. Under the Sampoorn Gramin Rozgar Yojana (SGRY) 50 lakh tons of foodgrains worth Rs 5,000 crore are to be made available to the states annually. Whether or not the distribution, free of cost, of 50 lakh tons of foodgrains to the states would be shown by the centre as part of its budget has not been made clear. The question whether it should be shown as such is itself open to some dispute, for the reason that the foodgrains to be distributed will be part of the food stocks already held by the Food Corporation of India (FCI). The question would arise only with regard to the cash component of Rs 5,000 crore to be handed over to the states for implementing the scheme.
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