Andhra unlikely to get Rs 5,100 cr from Centre

Finance panel releases funds directly to panchayats, it will be difficult to get them in absence of elected bodies
Andhra Pradesh Minister Buggana Rajendranath  (Photo | P Ravindra Babu, EPS)
Andhra Pradesh Minister Buggana Rajendranath (Photo | P Ravindra Babu, EPS)

VIJAYAWADA: Officials of the State government are of the view that getting funds to the tune of Rs 5,100 crore from the Centre under the 14th Finance Commission are bleak following the postponement of the elections to the local bodies.

Stating that the Panchayat Raj and Rural Development and the Finance departments urged the Centre to release the 14th Finance Commission funds soon after the start of the local body election process in the State, official sources revealed that the Centre assured to release the funds once the polls are completed.
However, the postponement of elections is likely to hit the release of funds to the State, the officials observed.

“The 14th Finance Commission funds are released directly to gram panchayats and it will be very difficult to get the funds in the absence of elected bodies. Because of the reason, the State government hurriedly commenced the exercise to complete the local body elections by the end of March,” a senior official told TNIE.

An AP delegation, led by Finance Minister Buggana Rajendranath, met Union Ministers and officials in Delhi recently informing the conduct of local body polls and appealed to them to release the pending 14th Finance Commission funds to the local bodies. The postponement of elections has complicated the situation.

“In fact, we have got a positive response from the Centre over release of funds once the local body elections are completed. But, the situation has completely changed now following the deferment of local body elections by six weeks and the chances of getting the funds from the Centre are less and even zero. Meanwhile, the officials are also of the view that the counsel representing the State government in the Supreme Court should first seek the the Apex court to give a direction to the State Election Commission to conduct the local body polls as per the schedule to enable the rural and urban local bodies to get the 14th Finance Commission funds.

And in case of not getting a favourable order in this regard, the counsel should urge the court to give a direction to the Centre for the release of funds to Andhra Pradesh even if the elections are held after the end of the current fiscal, the official said.

Funds release

  • Rs 3,700 cr Panchayats
     
  • Rs 1,400 cr Urban local bodies
     
  • Deferred polls may hit finances
     
  • The Centre assured to release the funds once the polls are completed. However, the postponement of elections is likely to hit the release of funds to the State, officials observed

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