The 15th Finance Commission headed by Chairman, Shri N.K. Singh alongwith its Members and senior officials met today with the representatives of the Rural Local Bodies of Uttar Pradesh.

The Commission was informed that:

• UP Panchayati Raj Act, 1947 is the act governing PRIs in the State.
• The 5th SFC constituted in 2015, submitted its report on 31st October 2018. The key recommendations are under consideration of the by the Cabinet sub-committee. However, it is yet to be laid in the legislative Assembly. The State is currently implementations the recommendations of the fourth SFC Report.
• Only 15 functions out of 29 envisaged in the Eleventh Schedule of the Constitution devolved to PRIs
• UP has 59,073 Gram Panchayats,  821 Kshetra Panchayats and 75 Zila Parishad .
• According to Pr AG UP, during the period (2013-14 to 2017-18), own revenue generation constituted 2-3% of the total revenues in case of PRIs.

 XIV –FC Devolution to the State:

Grants	All States(cr.)	Uttar Pradesh  (cr.)	Grants to Uttar Pradesh as a % to Total Grants
Basic Grant	180263	32199	17.9%
Performance Grant	20029	3578	17.9%

The Key Observations of the 4th SFC of the UP Government were:

• 12.5% of the State’s tax and non-tax revenues net of cost of collection to be devolved.
• The distribution amongst RLB: ULB is in the ratio of 40:60
• The Commission recommended that like the previous SFCs, and till the new SFC report comes after this 4th SFC, the Government can apply the recommendations of this SFC.
• The SFC observed that there was a lack of cooperation from the State government officials in releasing information to the Commission for organisation of data as required, and also there was undue administrative interference from the Government officials in the working of the Commission.

Representatives of RLBs - Sh. Kulvinder Singh, President, Zilla Panchayat, Meerut; Smt. Sarita Dwivedi, President, Zilla Panchayat, Banda; Smt. Uttama Devi, Block Chief, Kshetra  Panchayat Bhathat, Gorakhpur; Sh. Rajesh Rawat, Block Chief, Kshetra Panchayat, Madavara, lalitpur; Smt. Shweta Singh, Gram Pradhan, Latifpur, Lucknow;  Sh. Rameshwar Singh, Gram Pradhan Khoradih, Mirzapur; Sh. Mahip Kumar Singh, Member, Zilla Pnchayat, Ward No. 19, Lucknow; Sh. Virendra Pratap Singh, Member, Zilla Panchayat, Jhansi; Sh. Subhash Chandra Bharati, member, Zilla Panchayat, Ward No. 4, Gorakhpur; Sh. Anoop Singh, Member, Kshetra Panchayat Budgora, Ward No. 93, Barabnki; Sh. Raj Km. Chaudhary, Member, Kshetra Panchayat, Siddharthnagar; Sh. Mithilesh, Member, Kshetra Panchayat Karvi, Ward No. 55, Behar, Chitrakut; Sh. Shyam Sundar, Member, Gram Panchayat Sarva, Sitapur; Sh. Habib, Member, Gram Panchayat Bhaneda, Shyamli; Sh. Ram Jeevan Shukla, Member, Gram Panchayat Palra, Jhansi were present for discussions with the Finance Commission.

The main requirements of Rural Local Bodies in Uttar Pradesh as highlighted to the Commission, include – lack of financial resources for development, water scarcity, property tax as a source of income,  poor social indicators, requirement for civic amenities like panchayat bhawans, mortuaries, road and drainage infrastructure, need for creation of check dams, problem of excessive status cattle, lack of safe drinking water, lack of funds for creation of public libraries, recreational areas and sports activities.

The Commission noted all the concerns highlighted by the representatives of the PRIs and promised to address them in its recommendations to the Central Government.

Devolution of functions to rural local bodies weak, constraining finances and service delivery; commission to recommend reforms. The Finance Commission met Uttar Pradesh rural local bodies to examine devolution and finances: only 15 functions from the Eleventh Schedule are devolved; PRIs have very low own-revenue mobilisation and depend on transfers. State Finance Commission recommendations on revenue shares and rural-urban allocation ratios were noted, and representatives highlighted funding shortfalls and infrastructure gaps (water, sanitation, panchayat buildings, roads) for consideration in the Commission's recommendations.