The Village and Town Development Council Act assented by the Governor of Meghalaya is a substitute for the Panchayati Raj Institutions (PRIs) in Meghalaya. The Act is aimed at empowering traditional institutions to deliver grassroots governance more effectively. Direct funding to the Village and Town Councils means that garbage management, street lighting, water supply and other delivery mechanisms would be more efficiently addressed at the level of the Village & Town Councils. The KHADC Executive Member in-charge Elaka, Jambor War informed that the KHADC will now need to come up with the rules for implementation of this important legislation.
Essentially the Village and Town Development Council Act, 2021 is aimed at bringing public welfare and socio-economic development of the towns/villages under the administrative control of the traditional bodies. The bill was unanimously passed by the KHADC in November 2021. The Act will pave the way for creation of the Village Development Councils (VDC) and direct funding to the Dorbar Shnong while the Town Development Council (TDC) which will oversee development works in villages and urban localities, respectively through constitution of a village or town development fund. However, there is a rider here. If we understand the Act correctly the funds will be made available to the Village and Town Councils by the KHADC and as informed by the EM in Charge Elaka such funds would be made available depending on the, “economic capability and subject to availability of funds.” Herein lies the rub. The KHADC hardly has adequate funds for development purposes. The bulk of its budget goes into payment of staff salaries and that of the 30 MDCs.
The Act also states that, “All funds, grants and other forms of monetary or financial assistance received from any source for the purpose of achieving the objectives of this Act shall be treated as part of the District Fund and shall be subjected to audit as per provisions of paragraph 7 of the Sixth Schedule of the Constitution. This is fine but for years together the Comptroller and Auditor General has made adverse remarks against KHADC for irregularities in book-keeping and expenditures. Unlike the Panchayats which receive funds via grants from the Union Government based on the recommendation of the Central Finance Commissions as per Article 280 of the Constitution and also devolution from the State Government based on the State Finance Commission as per Article 243, the Town and Village& Town Dev. Council will have to rely on the KHADC for funds. Needless to say, the real strength of the Town and Village Councils in terms of their autonomy and efficiency will depend on their financial position and their own capacity for generating resources. The State Government in view of its own tight fiscal position will not be in a position to do much. In fact, in most states PRIs too are fund-starved. Hence it remains to be seen how effectively the Village and Town Councils in Meghalaya will work.
