Parsottambhai Rupala, Minister Of State in the Ministry Of Panchayati Raj, has said that the 14th Finance Commission has, inter alia, observed that state governments are expected to take care of the needs of block development committees and zila panchayats.
He said this through a written reply to a question raised in parliament by Shimla MP Virender Kashyap.
He said that it is incumbent upon state governments to utilize the enhanced fiscal space made available by the 14th Finance Commission on account of higher devolution from 32 percent to 42 percent of the Centre's net tax receipts to meet such requirements.
Rupala further informed that 14th Finance Commission (FFC) has recommended grants to the tune of Rs.2, 00,292.20 crore for the award period from 2015 to 2020 to be devolved to Gram Panchayats (GPs) constituted under Part IX of the Constitution, for delivering basic services, creation of reliable data base of local bodies' receipts and expenditure through audited accounts and for improvement of own source revenue of Gram Panchayats . . The government has accepted the recommendations and funds are being devolved accordingly the minister told member parliament.
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