The State Government has decided to provide Rs 50 lakh incentive money each to village Panchayats with upto Rs 5 lakh tax collection. These funds will be provided to strengthen Gram Panchayats.
From the funds received on the recommendations of State Finance Commission and 13th Finance Commission, 5 per cent subsidy will be provided to Gram Panchayats, which are pioneer in self-tax collection. Funds to the tune of about Rs 60 crore will be given to Gram Panchayats under Self-Taxation Incentive Scheme.
A sum of Rs 60 crore will be given under Self-Taxation Incentive Scheme to 522 Gram Panchayats in the State for infrastructural development works. Under the scheme, State's 11 Gram Panchayats will be provided Rs 50 lakh each for collecting over Rs 5 lakh tax, Rs 25 lakh each to 108 Gram Panchayats for Rs 1 to 5 lakh tax, Rs 15 lakh each to 67 for Rs 50,000 to Rs 1 lakh tax,
Rs 6 lakh each to 239 Gram Panchayats for Rs 10,000 to Rs 50,000 tax and Rs 3 lakh each will be given to 97 Gram Panchayats for collecting less than Rs 10,000 tax. Using incentive funds, building-less Gram Panchayats will be able to construct their buildings as per approved map. Anganwadi buildings can also be constructed in villages not having such buildings. Installation of handpump and boundary wall will be mandatory in it.
Works of CC road construction in villages, water disposal works in Gram Panchayats where haat-bazaars are held and linking majra-tolas with Mukhyamantri Gram Sadak Roads can also be done using these funds. If needed, these funds can also be converged with MNREGA.
A total of Rs 50 lakh each incentive money will be given for collection of over Rs 5 lakh tax to one Gram Panchayat Gogawan of Khargone district, five of Jabalpur district
including Gandhi Gram, Karmeta, Ugaria, Gosalpur and Bilpura, Saikhera of Narsinghpur district, Moman Badodiya of Shajapur district, 3 Gram Panchayats of Chhindwara districts including Chandangaon, lonia and Karbal and Dewas district's Sukliya-Kshipra Gram Panchayat.