Panchayats can earn more with tax reform

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tax

   Gram panchayats can earn 1200 crore more every year and gradually become self-reliant on the financial front if its tax collection and other revenue generating methods are improved.

   The Telangana state finance commission is identifying the areas where tax collections can be improved to make gram panchayats financially stable. Experts from the panchayat raj and rural development department are also studying ways and means to put gram panchayats on the wheels of financial stability.

   Bringing under property tax net uncovered and under accessed properties, cent percent collection of water supply bills and its arrears after ensuring bills to all the consumers are raised, savings by efficient management of street lights, collecting fee on outdoor advertisements such as banners, cut-outs and hoardings put up by political leaders during Jataras, festivals, special occasions and elections were some of the measures that were discussed to improve income of the gram panchayats.

   Though the Union Rural Development Ministry-appointed Sumit Bose committee has submitted a report to the Centre asking it to advise state governments not to create new “small gram panchayats” as they cannot sustain on their own, TRS government went ahead and created over 4300 new gram panchayats, with several of them being very small.

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source: The Times of India

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