COIMBATORE: Grassroots level administration in the state has taken a hit as the department of rural administration has not released funds due to panchayats since February, allegedly due to technical issues, making it difficult for the local bodies to meet day-to-day expenditure.
P Ponniah, director of the rural development and Panchayat Raj, said, “Due to some technical issues, funds could not be sent to around 1,017 panchayats. Of this, 50% of panchayats are in Coimbatore. We are working to sort it out. The fund would be released soon.”
According to sources, the government devolved financial autonomy to the village panchayats by authorising them to undertake financial transaction through elected representatives. Through G.O. (Ms) no.92, issued on March 23, 1997, the rural development department, introduced a new system of accounts that is to be maintained by every village panchayat.
Subsequently, the number of bank accounts maintained by a panchayat increased in order to implement every new schemes announced by state and union governments from time to time. To simplify this, the department adopted the ‘Tamil Nadu Panchayat Simplified Accounting System (TNPASS) in November 2023.
This is a single state nodal account (SNA) aimed at bringing tax collections in local bodies under a single window system so that the number of bank accounts held by a panchayat could be reduced. Under the system, the tax revenue generated by a panchayat will be maintained in one account. The director of rural development department will release it to the panchayats.
Several panchayat presidents allege that funds have not been released since February. R Rajkumar, president of Vadakkalur panchayat in Annur union said, “Tax is the only revenue source of each panchayat. Our panchayat generates tax up to Rs 7 lakh annually. As the tax amount was not released for the last two months, we are facing difficulties in carrying out administrative works such as repair of pipes, street lights maintenance, water tank and paying wages to staff. During a recent emergency, a ward member and I spent Rs 3 lakh and are awaiting funds from the government.”
Chitra Subramaniam, president of Kanjampalli panchayat, said, “Since we do not have enough funds, we could not carry out any work. Our panchayat generates Rs 13 lakh tax annually. Due to fund crunch, we could not pay the contractors. They are now avoiding us and not taking works. Despite making repeated representations to the assistant director’s office, funds have not been released. As the model code is in force, we could not stage demonstration or protest.”
M Natarasan, president of Pogalur panchayat and vice president of panchayat presidents union said, “All panchayats across the state are under a crisis as funds have not been released for the last two months. Several panchayats could not repair even pipe leakages.”
When contacted, R Saravanan, assistant director of panchayat administration cited server issue as the reason for the delay. “There is no pending work and paying of wage to staff as grant was released 10 days ago,” he added.
Minister for Rural Development I Periyasamy, said, “Some issues in operation and server issues are the reasons for the delay in releasing funds. Details given by each panchayat need to be corrected.”
At a glance
36 District panchayats
388 Block panchayats
12,525 Village panchayats
Each village panchayat used to maintain 11 bank accounts (1.4 lakh approx) and 31 registers and forms till November 2023