GRASSROOTS CHANGE
Use 25% funds for urban poor: Govt to civic bodies…..Mahendra Kumar Singh
Asks States To Change Laws For Provision
Use 25% funds for urban poor: Govt to civic bodies…..Mahendra Kumar Singh
Asks States To Change Laws For Provision
New Delhi: In a significant pro-poor move,the Centre has directed all municipalities to earmark a minimum 25% of their funds for ensuring basic services such as affordable housing,water supply,sewage and drainage for the poor living within their jurisdiction.
The urban housing and poverty alleviation ministry has asked state governments to amend municipal laws to ensure allocation of a minimum 25% of their municipal budget for rendering services to the poor and setting up of a Basic Services to the Urban Poor (BSUP) fund.
While West Bengal and Tamil Nadu have implemented pro-poor reforms and amended the municipal Act,many states are yet to take these steps.
Implementation across the states was varied and does not have the force of law, says the ministrys letter that has been sent to state governments.
The ministry is also considering to make amendment in municipal laws to make sure that at least 25% of funds are set aside for propoor schemes,which are mandatory for availing of Central assistance like Rajiv Awas Yojana a plan that specifically looks into slum upgradation and rehabilitation.The ministry has also sent to the state government a model amendment law to municipal Acts as a ready reckoner.The BSUP fund can be maintained from municipal budgetary resources like tax,fees,user charges and rent and assigned revenues.
Also,it can be managed from Central or state finance commissions allocations,contributions in cash or kind,gifts from individuals or organizations,donations,grants from externally-aided projects and sale of municipal assets.The amendment suggests that the civic body can raise resources for the fund from other sources as well.It deals in detail on the utilization of fund,preparation of performance budget,maintenance of separate bank account and non-lapsable nature of fund.
For instance,if the annual allocation is unutilized,the balance cannot be transferred to the municipalitys general budget.However,it can be carried forward for utilization in subsequent years budgets.
The ministry has spelt out specific services like water supply,drainage,construction of community toilets,solid waste management,parks and playgrounds,community centers,pre-primary and primary education centers and affordable housing that can be funded by the BSUP.
The civic bodies are barred from utilizing the fund for running establishments,including payment of salaries and wages,since they arent specifically incurred for providing basic services to the poor in their jurisdiction.
GIVING THEM A FAIR DEAL
* West Bengal and Tamil Nadu are the only states to have implemented pro-poor reforms
* UD ministry is also considering amendment in municipal laws to make sure that at least 25% of funds are set aside for pro-poor schemes
* Basic Services to the Urban Poor fund can be maintained from municipal budgetary resources like tax,fees,user charges and rent
* Civic bodies are barred from using this fund for running establisments,including payment of salaries and wages