HYDERABAD: The need to strengthen panchayats to mobilise internal revenues for efficient service delivery was stressed on Tuesday, the first day of the two-day national conclave of State Finance Commissions (SFC).
Inaugurating the conclave at the National Institute of Rural Development Panchayat Raj (NIRDPR), Ashok Lahiri, a member of the 15th Central Finance Commission, said that local governments had the ability to actually touch the people at the local level by providing them with basic services.
Reminded that Mahatma Gandhi believed in democracy at the grassroots, Lahiri said that democracy could be seen in action only at the gram sabhas. He also reminded that the 15th Central Finance Commission had recommended enhancing professional tax from the existing Rs 2,500 to Rs 18,000 per annum.
“Panchayats should make it mandatory to collect property tax, and it needs to be considered by the States,” Lahiri said.
CS Kumar, Additional Secretary, Ministry of Panchayat Raj, felt that finance was the lifeblood of the functioning of any organisation and that the SFCs were crucial in translating the mandate of the Constitution to make the panchayats self-governing institutions.