Panchayat min plans spend on network

The panchayati raj ministry has proposed to earmark 5 to 7 per cent of the budgetary allocation of seven flagship schemes for strengthening the panchayat network.

The funds will be utilised for capacity building programmes like creation of infrastructure, training staff and computerisation.

"Around Rs 1,500 crore is needed per year for the next five to seven years for sustained capacity building," an official told Business Standard.

The total allocation for the seven schemes for 2006-07 is Rs 46,848 crore. A 5 per cent allocation from them will amount to around Rs 2,342.4 crore.

The seven schemes are Sarva Sikhsha Abhiyan, Mid-day Meal Scheme, Rajiv Gandhi Drinking Water Mission, Total Sanitation Campaign, National Rural Health Mission, Integrated Child Development Services and National Rural Employment Guarantee Scheme.

"Panchayati Raj Minister Mani Shankar Aiyar proposed allocating 5 to 7 per cent of rural flagship schemes' expenditure towards capacity building. A presentation was made before the Planning Commission," a commission official told Business Standard.

The idea was originally mooted by Planning Commission Deputy Chairman Montek Singh Ahluwalia. A similar arrangement exists in the form of a non-lapsable central resource pool to fund specific programmes for economic and social uplift of the North-Eastern states.

A separate funding proposal will be prepared for the Eleventh Five-Year Plan period (2007-12).

For 2006-07, essential infrastructure will get Rs 1,438 crore, panchayat staff will receive Rs 1,404 crore and Rs 25 crore will be allocated for building staff capacity to manage devolution.

"Funds for e-governance for panchayats will come from National e-governance Plan as announced by the finance minister for sustained capacity building," the official added.