Finance commission recommends Rs 4480cr devolution to RLBs, ULBs

Keeping in view the problems and the demands of the rural local bodies (RLBs) and the urban local bodies (ULBs), the 3rd State Finance Commission (SFC) has recommended the state government for devolution of Rs 4480.85 crore to these bodies over a period of five years spanning from 2010-11 to 2014-15.

Out of the total recommended amount, 75 percent (about Rs 3360.64 crore) is proposed to be devolved to the RLBs and the remaining 25 percent to the ULBs.

The devolution is based on the average gross state revenue over a period of three years from 2005-06 to 2007-08. The suggested amount represents 15 percent of the average revenue receipts for this period.

While the average gross state revenue for the three years was calculated at Rs 5974.48 crore, 15 percent of it (Rs 896.17 crore) was decided as the amount to be the devolved per annum. So for the entire 5 years period, the total devolution has been estimated at Rs 4480.85crore, sources said.

The SFC, headed by Dr Sudhakar Panda, has requested the 13th Finance Commission to transfer this amount to Orissa for augmenting the consolidated fund of the state.

Besides, the SFC, has requested the 13th Finance Commission to provide Rs 11,981.62 crore to the state urban development and Panchayatiraj department on the basis of the demand submitted by these two departments to the SFC.

The work for which the SFC has recommended devolution of funds to the RLBs include rural water supply, upgradation of Panchayat Samiti and Gram Panchayat roads, maintenance of minor irrigation projects, maintenance of primary and upper primary school buildings, renovation of water bodies, construction of Zilla Parishad and maintenance of Panchayat Samiti offices and toilet facilities in all the 6234 Gram Panchayats of the state.

Besides, the commission has recommended devolution for improvement of street lighting, construction of training centre for the self help groups (SHGs) in populous GPs, development of cremation-burial ground and setting up of herbal garden as an environmental measure.

For the ULBs, the commission has recommended devolution for improvement of water supply, development of integrated sewerage system, urban slum development, maintenance of roads and buildings, public toilet with water facilities, environmental development, construction of auditorium-culture centre and development of bus stand and parking facilities.

Besides, the money will go to set up 12 tribal museums for preservation of tribal culture, development of market yard and construction of Kalyan Mandaps in 100 ULBs of the state. Taking the note of the drinking water problem in some towns like Berhampur, Sambalpur and Cuttack, the commission has suggested financial assistance to meet this vital need.

Besides, it has also recommended for specific need grant to Jeypore municipality for development of underground drainage system, Kuchinda municipality for development forest park and Balasore municipality for the construction of drainage system in the town.