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This is an archive article published on February 20, 2000

State spending needs review, Statute can wait — Dandavate

MUMBAI, FEB 19:"It is not the review of the Indian Constitution a dire need of the hour,but a thorough revamp of the State Government...

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MUMBAI, FEB 19:

"It is not the review of the Indian Constitution a dire need of the hour,but a thorough revamp of the State Government expenditure planning," saidformer deputy chairman of Planning Commission Madhu Dandavate.

Addressing a seminar in the city on Panchayati Raj as part of the programmesorganised to celebrate the birth centenary of Balwantrai Mehta, Dandavatestrongly criticised the State Government’s role in implementing properPanchayati Raj or decentralisation of powers to zilla parishads orpanchayats.

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He claimed the direct budgetary allocation from the Centre is not beingutilised effectively in development programmes of zilla parishads andpanchayats.

Citing an instance, he said during the Ninth Five Year Plan planning period,the Commission had offered 171 development schemes fully sponsored by theGovernment of India to the state governments, but very few states acceptedthe offer. In spite of these schemes offered along with adequate funds, thereason as claimed by the politicians were fear of Opposition party’s chargeson undue favour by the Centre.

He also criticised the grant given to every Member of Parliament fordeveloping his locality which amounts to a whopping Rs 2 crore. None ofthese budgetary allocations are used in a proper manner but end up infrivolous deals with private contractors. The disbursement of resources aredirectly related to vote banks in the area with no consideration topanchayats and local bodies, he said.

Though there were several committee reports stressing the need ofdecentralisation of powers to panchayats, none of these recommendations havebeen implemented in any State, Dandavate said. But added that Kerala is anexception. He said the State allocates over 40 per cent of the budgetaryallocation or Central Plan Assistance to panchayats for their developmentprogrammes. Also none of the local taxes and other revenues mopped up by thepanchayats are given away to state exchequer. Dandavate said this is thekind of decentralisation that all states should implement, though variousexternal influences mar the plans.

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He reiterated the fact that the Planning Commission should give thrust tothe panchayats or zilla parishads since mere enforcement of powers alonewould not serve the purpose but adequate release of funds for developmentalprogrammes. He also stressed that the need for tackling the most deep rootedevil in the system – corruption – at all levels which hinders alldevelopment plans.

Dandavate remembered the role of Balwantrai Mehta as the pioneer indeveloping Panchayat Raj concept in India. A committe headed by BalwantraiMehta had recommended the need of panchayati raj system, which givesautonomous powers to gram panchayats, and later resulted in incorporatingthe same as Article 40 in the Indian Constitution.

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