SHILLONG: The three autonomous district councils– KHADC, JHADC and GHADC– have apprised the 15th Finance Commission that the revenue collected is barely sufficient to carry out their day-to-day administrative activities and primary duties as envisaged in the sixth schedule leaving virtually no funds for development work.
The delegation of the commission met the representatives of district councils on Tuesday.
Earlier, the 14th Finance Commission did not make any award for the councils stating that provisions of Part IX and IX A of the Constitution (provisions for creating Panchayat) do not apply to Meghalaya.
The councils told the commission that royalty is collected by the state government and is shared between the district councils and the state government in the ratio of 25:75 in respect of coal.
Share of royalty in respect of other major and minor minerals is in the ratio of 60:40 between the district councils and the state government.
The main revenue sources of the councils are taxes on professions, trades, and employment, taxes on animals, vehicles and boats, taxes on the entry of goods into a market and sale therein, and tolls on passenger and goods carried on ferries and taxes for the maintenance of school, dispensaries or roads.
The commission assured to look into all these matters before making its final recommendations.
Assistance to local bodies
15th Finance Commission also met officials of the urban local bodies of the state.
The commission was informed that the state has constituted its local bodies under the Meghalaya Municipal Act and Sixth Schedule of the Constitution.
“As the urban local bodies are not constituted under 74th constitutional amendment, the state is not bound to follow certain provisions of the amendment, for example, to hold direct municipal elections, constitute ward committees, reserve seats for schedule castes, schedule tribes and women, continue municipalities for a period of five years, and constitute state finance commission, state election commission and district planning committees”, the officials told the commission.
There are six Municipal Boards (MBs) in Meghalaya but the elections are not being held regularly.
Regarding the revenue sources, the Commission noted that the Meghalaya Municipal Act 1973 empowers the MBs to mobilise resources through the levy of taxes as well as non-tax sources. The tax sources include levy of tax on holdings situated within the municipality, water tax, light tax, latrine tax, drainage tax, tax on private markets and tolls on bridges.
The non-tax sources include license fees on carts, carriages and animals used for riding, or burden, fee on the registration of dogs and cattle, license fee on boats, betterment fee, fees for setting up and maintenance of fire brigade, fees for conducting at the cost of Board, any scheme of social service for the improvement of public health, fee on boats mooring within the municipality and penalties for various offences.
Their own resources are reported to be insufficient to carry any development work.
The commission assured to look into the issues raised by the officials while making their recommendations on Meghalaya.
