Villages run out of funds

Gram panchayats in the new state of Telangana are facing a severe financial crunch, and most developmental activities at the grassroots level have come to a standstill. Though local representatives, who were elected to the village, mandal and zilla parishads in the recent polls, had pledged to take up various projects in the countryside, they soon realized that the coffers are empty and they cannot move ahead unless the central government comes to their rescue.
On paper, the village bodies are covered under numerous schemes funded by the state finance commission and the 13/14{+t}{+h} finance commission. They also get their share in transfer duty, seigniorage, taxes and funds from the backward region grant. Some of these schemes are exclusively meant for maintenance of schools and hospitals, water supply and repair of public borewells. But when it comes to reality, these funds are often held up for various reasons. The central and state governments often do not release funds on time to enable the local bodies to complete projects without cost escalation.
"We were committed to take up more works in our village," said A Satyanarayana, sarpanch of Sheeriguda Badrayapally village, adding that the lack of funds has held up several schemes, including the all-important sanitation works. "We are unable to take up even drinking water schemes, leave alone good roads and underground drainage facility," he pointed out.
Analysts feel that the new government should empower gram panchayats by releasing special funds for development. "We do hope the new government will make villages financially strong so that the local bodies can take up new projects," said Manjula, sarpanch of Mekaguda village.
However, in certain cases, village bodies themselves are responsible for their poor financial status. In many villages, sarpanches do not collect property tax and water cess due to political pressures. In the absences of these two major sources of revenue, gram panchayats are left with hardly any funds.
Another reason for the crunch is the diversion of village funds to employment guarantee schemes, observed G Anjamma, sarpanch of Rangapoor village. Failure of monsoon has added to the woes as villages have to concentrate on supplying drinking water. "The ground water level has fallen and the village is spending whatever funds are left on the transport of water through tankers," said B Sumana of Burgul village in Farroqnagar mandal.
* Central and state governments hardly release funds on time to complete projects without cost escalation
* Some villages fail to collect property tax and water cess due to political pressure
* Village funds are also being diverted to employment guarantee schemes
* With poor monsoon, gram panchayats are spending leftover funds to ensure drinking water supply
QUOTE
With no money left with us, we have become mere spectators - Radhika, ward member, Kongarakalan village, Ibrahimpatnam mandal