Chief Minister N Chandrababu Naidu directed the officials to initiate measures to strengthen local bodies through their own revenue resources besides the support from both Central and state governments. He said the local bodies identified with backwardness and low per capita income should provide special assistance.
The fifth state finance commission meeting was held at the secretariat. The commission members handed over the commission recommendations for strengthening the local bodies to the Chief Minister. Speaking on the occasion, the Chief Minister said that a detailed study should be conducted for development of panchayats including the utilisation of MGNREGA funds for strengthening of local bodies.
He stressed the need for increasing revenue resources of local bodies and officials should work hard to strengthen local bodies. He directed the officials to complete the auditing of both panchayats and urban development authorities.
Speaking on the occasion, Deputy Chief Minister Pawan Kalyan asked the officials to come out with details of house tax revenue from 2019-24 and made the accounts available online. At the same time the poultry industry should be strengthened.
Meanwhile, the fifth finance commission members stated that the state has been facing several financial challenges and when they have a look at 2023-24 financial year position, Employees salaries, pensions and amount spent towards interests stands at 111 per cent.
In addition the government has to fulfill the commitment of development of Amaravati capital and implementation of super six programmes. The finance commission members stated that the resource gap of panchayat raj between 2025 to 2029 stands at Rs. 7,033 crore.
At the same time the resource gap of urban development authorities stands at Rs. 2,016 cr marking a wide gap between tax revenue demand and collection. The finance commission members stated that the power bills due of panchayats stands at Rs. 5,851.58 cr till June 2024 though the funds sanctioned to panchayats in different forms stands at Rs 2617 crore.
The commission members stated that the panchayats are spending Rs 393.77 cr towards salaries of panchayat raj staff and Rs 1672.45 cr towards salaries of municipal staff. Fifth state finance commission chairperson Ratna Kumari, members Prasada Rao, Kruparao and officials were present.
