Govt to act tough against local bodies which fail to collect revenue

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Kerala Government Secretariat | Photo - Mathrubhumi archives

Thiruvananthapuram: The Kerala government has decided to evoke stringent action against local bodies which follow unsystematic financial management practices. The move comes in the wake of the finding that many local bodies failed to collect revenue in the form of taxes, fee for various services, fine and building rent.

The decision of the government is to go hard on those local bodies which have failed to collect 90 per cent of the estimated revenue. The finance ministry has issued an order on the same. Gram panchayats, municipalities and corporations will come under the ambit of the order. The proposed measures are:

1) The development fund allocation to such local bodies in general category will be shelved by 1 per cent.

2) The details and list of defaulters will be published by panchayat-municipal directors

These measures are part of recommendations in Sixth State Finance Commission for Local Self Government Institutions. The plan is to implement the measures in this fiscal year itself. The local bodies will be evaluated on the basis of previous year’s revenue collection.

The changes are expected to better the financial progress of the local bodies. The move comes at a time when the state government is trying to manage through financial challenges ahead.

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