The Fifth Finance Commission (FC) has assessed total requirements of the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) at Rs 50,282 crore.
The Government has taken decision for distribution of devolution amount among the three-tier PRIs (Gram Panchayat, Panchayat Samiti and Zilla Parishad) in the ratio of 60:30:10 with 50 per cent tied up funds. During the fourth SFC, it was in the order of 70:25:05.
As per the action taken report on the recommendation of the Fifth Finance Commission of the Odisha State Finance Commission which was tabled in the State Assembly on Saturday, the total amount of transfer to PRIs as recommended by the Commission would remain unchanged.
“During the fourth SFC, it was in the order of 70:25:05. But the Panchayati Raj and Drinking Water Department has suggested the three tiers of PRIs in the order of 60:30:10 and out of 30 per cent allocated to Panchayat Samitis, 50 per cent will be tied up for drinking water, sanitation, solid waste management and rest 50 per cent will be united fund to be utilised for providing basic services like communication, improvement of secondary educational institutions and health care institutions like CHCs and PHCs,” it said.