TMI Blog15th Finance Commission Meets Representative of PRIs of PunjabX X X X Extracts X X X X X X X X Extracts X X X X ..... 15th Finance Commission Meets Representative of PRIs of Punjab - News and Press Release Dated:- 29-1-2019 - News - The 15th Finance Commission headed by Chairman Shri N K Singh, met with over 25 representatives of various Panchayati Raj Institutions (PRIs) in its first meeting during the 3 day visit to Punjab. The Commission had detailed discussion with the representatives and the State Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Officers. Status as provided by Punjab on 3Funds Functions and Functionaries : ❖ Punjab Panchayat Raj Act, 1994 is the act provisioning for local self-governance for PRIs ❖ Recommendations of 5 th State Finance Commission (SFC) Report are currently in force: It recommended 4% share of net proceeds of all state taxes. ❖ Only 13 functions out of 29 envisaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Eleventh Schedule of the Constitution devolved to PRIs ❖ Elections for Panchayats were last held in December 2018. ❖ Number of local bodies at each level of PRI is as below: PRI Number of Local Bodies Population as per Census 2011 Gram Panchayat 13215 1,73,44,192 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Panchayat Samiti 150 Zila Parishad 22 Revenue Sources of PRI s- Provided by the State ❖ Revenue of Panchayats from its own taxes is almost negligible, around 0.11% of total revenue during 2011-12. This became nil after 2015-16. ❖ Non-tax revenue of Gram Panc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hayats also reduced from ~26% in 2011-12 to ~19% during 2016-17. ❖ Major source of revenue of the Gram Panchayats is grants from the State/Central Government. ❖ Own revenue of Panchayat Samitis as share of total revenue varied between 40% and 56% during 2011-12 to 2016-17. ❖ Share of own revenue of ZPs to total revenue varied between 1% and 4% during 2011-12 to 2016-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. ❖ Some ZPs have constructed buildings, which generate some revenue in the form of lease money. According to Pr. AG Punjab, following are the issues pertaining to accounting of PRI ❖ Accounts from the year 2011-12 to 2017-18 are in arrears. ❖ In case of PRI s, there is no process of consolidation of accounts at different levels (village accounts to block level ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to district and finally to state level). ❖ Model Accounting System (MAS) for PRIs are yet to be followed XIV FC Devolution to the State Grants All States(cr.) Punjab (cr.) Grants to Punjab as a % to Total Grants Basic Grant 180263 3682 2.04% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Performance Grant 20029 409 2.04% Key Observations of 5 th SFC ❖ 5 th SFC recommended 4% of the Net total tax revenue of the state (less cost of collection) to be devolved to local bodies. ❖ It recommended that apart from the 14th FC grants to Gram Panchayats only, the other two levels of PRIs, i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e., Panchayat Samitis and Zila Parishads shall be given an annual grant of ₹ 1 crore. The Commission also recommended performance grants. ❖ PRIs were not able to collect and maintain good quality data as a result of which many Panchayats were ineligible for Performance grants as recommended by XIV -FC - News - Press release - PIB Tax Management India - taxmanagementindia - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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