Devolution of Finances to PRIs
Name of the PRIs
Kshetra Panchayat and Zila Panchayat Act, 1961 the fourth general elections are due in 2010.
At present the status of PRIs & elected representative in Uttar Pradesh is as follows :-
As per constitutional provisions and the provisions made in U.P. Panchayat Raj Act 1947 and U.P.
Article 243 I of the Constitution provides for the Constitution of a state Finance Commission
(SFC) to review the financial position of Panchayats and to make recommendation regarding principles governing –
Distribution between the state and the Panchayat of the net proceeds of taxes, duties, tolls and fees leviable by the state,
Determination of taxes, duties, tolls and fees that may be assigned to, or appropriated by the Panchayats,
The grants-in-aid to the Panchayats from the consolidated fund of the state,
The measures needed to improve the financial position of the Panchayat and
Any other matter referred to the Finance Commission in the interests of sound finances of the Panchayat.
State Finance Commissions
The Ist Finance Commission recommended 3 percent of the total tax revenue of the State, the State
Government increased it to 4 percent and transferred the funds to the Panchayat every year since 1997-98. Government also accepted the recommendation of IInd SFC and devo lved 5% of the state net income from taxes to PRI's. The IIIrd State Finance Commission was appointed in Dec. 2004 constituted under the chairpersonship of Shri S.A.T. Rizvi that has submitted its report to govt., which is under active
consideration of the government.
Transfer of Untied Funds
So far an amount of Rs. 9321.89 crore and an amount of Rs. 4622.75 crore under Central Finance
Commission since 1996-97 have been transferred to Panchayats in the State.
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