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POVERTY REDUCTION STRATEGY TN

. Augmenting Fiscal

. Augmenting Fiscal Space Districts depend to a considerable extent on resource transfers from central as well as state governments. The State Finance Commission has also made recommendations from time to time. At present, in Tamil Nadu, the Third State Finance Commission is now deliberating on the issues of fiscal devolution to the local bodies. As far as rural areas are concerned, they depend to a large extent on transfers. However, tax and non-tax resources assigned to them remain under-exploited. The State Finance Commission may link some portion of its recommended devolution to local body’s own revenue effort with a view to augmenting the fiscal space available to the local bodies through transfers as well own revenue effort. Funds allocated by the Central Finance Commission for rural local bodies are at the state level. The state government has to allocate these among the rural bodies of the state. State government should follow a combination of need-based criteria (relative deficiencies) and incentive-based criteria (revenue effort) for dividing the allocated funds. The 9 percent allocation will be divided between the rural local bodies and urban bodies in the ratio 58:42. This 58 percent will be allocated to the village Panchayat, Panchayat Union and District Panchayat in the revised ration of 60:32:8 during the 11th plan period. In the Eleventh Plan period, the GoTN is proposing to increase the finances for the local bodies from 8 percent of the states own revenue to 9 percent. The percentage of devolution is to be progressively increased to 10 percent over the plan period. This increase at one percent constitutes an increase of nearly Rs. 360 crore over the previous annual allocation of Rs 1224.76 crore. It has also been proposed that the entire Twelfth Finance Commission (TFC) grant will be allotted only to village panchayats. This TFC grant will be Rs. 174 crore every year with the overall anticipated fund flow over the plan period being Rs. 870 crore. More generally, it is expected that the districts relatively more deficient in or more of the MDG indicators will receive larger resources once the state level allocations under various departments are better aligned with indices of deficiency at the district level. c. Structuring Expenditure towards MDGs Most schemes administered by the district administration come with assigned funds. For their respective areas of deficiencies, district administration has to demand more resources from the higher tiers of government for increasing the share of funds in the required areas. 174

d. Targeting As far as rural areas are concerned, targeting has to be geographic, moving from blocks to villages. Within the villages, specific household can be targeted. e. Efficiency There is clear scope for obtaining allocation efficiency through construction of relative deficiency indices in respect of income-poverty, health, education, and gender related indicators at the level of blocks. An approach similar to one suggested for the state level (allocation among districts) should be followed for block level allocations. It should depend on (a) relative extent of deficiency, and (b) share of beneficiary population. Some of the important reforms for implementation efficiency contemplated by the GoTN include: a. introduction of scale of pay for Panchayats Assistants who have been working only on consolidated wages; b. phone connections to be provided to all the Village Panchayats; c. computers to be installed in all Village Panchayats with provision for internet connectivity; d. providing manpower assistance through Makkal Nala Paniyalargal, technical assistants and computer assistants for better implementation of TN REGS. Vacancies in all categories to be filled up on war footing; and e. providing vehicles to all the Block Offices, with increased ceiling limit on fuel every month. The GoTN aims that the schemes under Panchayat Raj department and other departments such as Highways, Public Works, Social Welfare, Health, Education, Agriculture Engineering, TWAD among others will be dovetailed as far as possible into the Village Panchayats taken up under Anaithu Grama Anna Marumalarchi Thittam. The GoTN expects convergence of at least Rs.1 crore of funds under various Governmental schemes to each AGAMT Village Panchayat. f. Reforming Programmes While most programmes are designed from above, there is still scope for the district/block/village administration to work out specific schemes suited for their specialised needs. Gram panchayats have a role to play in ensuring that all eligible children go the schools and that teachers actually are present and teach. Much of the drop-out problem from primary schools has to be tackled by the local administration. 175

World Comparative Economic And Social Data
Police Stations - Tamil Nadu Police
N u m b e r o f S c h o o l s - DISE
Census 2011 population of Latur district
PDF: 1.0MB - Population Reference Bureau