Nadia Zilla Parishad
	Krishnagar, Nadia, West Bengal

12th Finance Commission

The Twelfth Finance Commission has recommended grants amounting to Rs. 1271.00 crores for the three-tier Panchayati Raj Institutions of this State payable during the period 2005-10. For devolution of grants under Twelfth Finance Commission on the Panchayati Raj Institutions, the Governor is pleased, in exercise of the power conferred by sub-section (2) of section 207B read with section 212 of the West Bengal Panchayat Act, 1973 (West Ben. Act XLI of 1973), to order and lay down procedure for entitlement and allocation of grants and utilization thereof by the Zilla Parishads, Panchayat Samitis and Gram Panchayats.

Principles of Utilization:

 1          In the utilization of grants under the Twelfth Finance Commission, the Panchayati Raj Institutions shall give priority to the maintenance of Water Supply, Sanitation and Drainage facilities.  They should attempt to recover at least fifty per cent (50%) of the recurring costs in the form of user charges through ‘Water Users Committee’ or through ‘ pay and use’ method for managing the existing schemes of water supply or sanitation facilities and the Panchayats shall be required to pay upto fifty per cent (50%) of the O & M (Operation & Maintenance) cost.  Special emphasis shall be given on periodical checking of quality of water and arrangement of disinfection, if necessary.

 2          The appropriate tier of the Panchayats shall maintain Sishu Siksha Kendra (Child Education Centres) under Sishu Siksha Karmasuchi (SSK), Madhyamik Siksha Karmasuchi (MSK) and Integrated Child Development Scheme (ICDS) or Centres under similar other programmes from the Grant of the Twelfth Finance Commission.

 3          The Panchayats shall take up all maintenance works relating to their responsibilities in Public Health and Nutrition.  The expenditure relating to maintenance works of Block Primary Health Centres, Primary Health Centres and Health Sub-Centres may be incurred from the grant of the Twelfth Finance Commission.

 4          The Panchayats shall take up all maintenance works relating to their responsibilities in Street Lighting and other public utilities like parks, gardens, play ground, places for social events, picnic or tourist spots, hat, bazaar, markets etc. which have already been developed. A lighting rate, where the Panchayat within its jurisdiction makes arrangement for lighting of public streets and places, may be realized through framing and adoption of byelaw in conformity with the West Bengal Panchayat Act, 1973 and rules framed there under. The Panchayats shall recover recurring cost of other public utilities, mainly used for commercial purpose, from the users.

 5          A part of the grant shall be utilised for maintenance of roads constructed by the Zilla Parishads under Pradhan Mantri Gram Sarak Yojana (PMGSY).  For maintenance of other roads constructed by different tiers of the Panchayati Raj Institutions (Zilla Parishad, Panchayat Samiti and Gram Panchayat) for rural connectivity and for which they have responsibilities as per the District Rural Road Policy, the grants available under the Twelfth Finance Commission may be utilised.

 6          The grants may also be utilised for preparation of an inventory of assets of the Panchayats, assessment of demand for revenue collection and engagement of professional valuers for assessment of tax on land and building in Panchayat areas as well as for outsourcing the help of experts in this respect.

 7          The Panchayats may need some fund to bear the contingent expenditure for taking up works for the purpose of utilizing the grants.  Upto one per cent (1%) of the allocation of the grants may be utilised towards office expenses for activity related to planning, implementation and monitoring of the activities in this regard.

 8          The grants under the Twelfth Finance Commission should be spent on maintenance of existing assets and no amount can be spent on salary, purchase of vehicles, new construction of works and works or assets of other Departments excepting those mentioned under para 3.3 above, unless specifically directed.  Also no amount will be utilised for any activity in any urban area excepting that within the office complex of Panchayati Raj Institutions, if situated in an urban area.