TN enhances the financial powers of panchayats

CHENNAI: The state government has enhanced the financial powers of village panchayats, panchayat unions and district panchayats by amending the Tamil Nadu Panchayats (preparation of plans and estimates for works and mode and conditions of contracts) Rules 2007.

As per the GO passed by the principal secretary of Rural Development and Panchayat Raj department on December 6, village panchayats, panchayat unions and district panchayats have been empowered to identify and execute works costing not more than Rs 5 lakh, Rs 20 lakhs and Rs 50 lakhs by passing resolutions in their respective councils.

The amended act allows district collectors, who are the competent authorities, to sanction works costing Rs 5- 50 lakhs, Rs 25 – 50 lakhs and Rs 50 lakh – one crore in village panchayats, panchayat unions and district panchayats, respectively.

Director of rural development and panchayat raj could sanction works costing more than Rs 50 lakhs in village panchayats and panchayat unions and Rs 1 crore in district panchayats. A statement issued by the state government in this regard said that the amendment would facilitate a welcome change in the administration of rural local bodies and deliver good governance to the people.

In a message posted on his Twitter handle, Chief Minister M K Stalin said that local bodies were empowered during the previous DMK regimes based on the recommendations of the high-level committees led by L C Jain in 1996, Ko Si Mani and myself in 2007. “We have empowered panchayats to devolve funds the same way now. Devolution of power is key to expedite service to the people in a democracy, ” Stalin added.