15th Finance Commission expresses concern over accountability mechanism in Rajasthan PRIs, ULBS

The 15th Finance Commission on Sunday expressed concern over the accountability mechanism and financial reporting of Panchayti Raj Institutions (PRIs) and Urban Local Bodies (ULBs) in Rajasthan. The commission, headed by its chairman N K Singh, held meetings with representatives of PRIs and ULBs here and pointed out issues pertaining to their accounts.

"The accountability mechanism and financial reporting of the Panchayati Raj Institutions in the state continues to be weak. Of the total 10,219 PRIs, only 6,802 (66.5 per cent) of PRI accounts were certified by the Department of Local Fund Audit," according to a release. The commission also expressed concern on unutilised funds of PRIs.

In another meeting with ULB representatives, it was noted that only 68 per cent of ULB accounts were certified during 2017-18. The National Municipal Accounts Manual (NMAM) was introduced for all ULBs to maintain accounts on the accrual-based accounting system from April 1, 2010, but only 60 ULBs in the state were maintaining accounts on this system, according to the release.

More fund allocation under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) to address issues of solid waste management, sewage treatment and water bodies' rejuvenation was discussed in the meeting. Funds were also sought for operation, and maintenance of built infrastructure under various schemes.

"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," the release said. It also held a separate meeting with economists in Rajasthan to discuss issues pertinent to fiscal devolution and the state's economic growth.

The commission noted that water availability and distribution is one of the most important concerns for the state and water supply at the village level is extremely expensive, which gives rise to concerns about sustainability of water supply programmes, the release said. "Considering the special issues concerning Rajasthan, future fiscal allocations may give special consideration to the difficulties in managing the cost of implementing programmes in deserts.

"The Finance Commission may also think of making allocations that incentivize water use efficiency," it said.  PTI SDA ANB

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