Gram panchayats in Odisha to get Rs 16,239 cr in five years

The amount includes Rs 8,850 cr as recommended by 14th Finance Commission and Rs 7,389 cr recommended by SFC as a measure for greater devolution of funds to local bodies

Gram panchayats in Odisha would be armed with huge financial muscle thanks to the recommendations of the 14th Finance Commission as well as the fourth State Finance Commission (SFC).

Following the recommendations of the two Commissions, the gram panchayats are set to receive Rs 16,239.64 crore in five years beginning 2015-16. The amount includes Rs 8,850.34 crore as recommended by the 14th Finance Commission and Rs 7,389.30 crore recommended by SFC as a measure for greater devolution of funds to local bodies.

The funds would be spent on providing basic services and maintenance of capital assets in the villages. Each gram panchayat is expected to receive Rs 25-50 lakh every year for funding such works.

The state government has brought out the "Ama Gaon Ama Yojana'' to plan and implement the execution of projects out of the allocations under the 14th Finance Commission.

For 2016-17, the transfer to local bodies (from the state resources) is pegged at Rs 2,290.88 crore by the SFC. The SFC has recommended to limit the total transfer to local bodies within 10 per cent of next divisible pool of state taxes projected for the award period from 2015-20.

The commission's recommendations include devolution and distribution of three per cent of net tax revenue during 2015-20 between the PRIs (panchayati raj institutions) and ULBs (urban local bodies) in the ratio of 75:25.