Bengal may be deprived of funds

Kolkata: The ongoing tussle between the West Bengal government and the State Election Commission over the Panchayat elections (Local body) may have a serious fallout on the financials of the state.

The federal government has warned that if the elections are postponed, and the state government appoints an administrator to run the Zilla parishads or district councils — the uppermost level in the three-tier panchayat system — funds given to state under various rural schemes may be stopped.

Speaking to Gulf News over phone Union Minister for Rural Development Jairam Ramesh said, “The funds allotted by the centre on various rural schemes are meant to be spent by the elected village council. But if that council is not elected within a time frame, then the centre will not be able to send the funds.” However, the state government opposed the view express by the union minister. “All rural schemes can be implemented by the Block Development Officer and the District Magistrate. This is under the perview of the state government as to how the various schemes are implemented. The centre cannot stop funds on baseless grounds,” state Panchayati Raj Minister Subrata Mukherjee said.

According to state government officials, the centre can stop funds for schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Indira Awaas Yojana (rural housing scheme), and Rural road schemes, citing clauses in the constitution. “Funds under the Panchayati Raj Ministry like Backward Regions Grant Fund, allocation under the 13th Planning Commission, and grants from World Development Bank which totals to Rs12 billion for Bengal can be stopped,” said an official.

“Under the MGNREGA, the law says that 50 percent of the money has to be spent through elected gram panchayat (village body) - the lowermost level in the three-tier panchayat system- which is authorised to devise and implement schemes. In the last financial year, Bengal has received 40 billion rupess under this scheme. But centre may cut it into half siting lack of elected village body,” the official added.

West Bengal Chief Minister Mamata Banerjee has been complaining about the ill-treatment that Bengal had been receiving in the hands of centre especially after Trinamool Congress had left the coalition last year. “The Congress government had been taking a political revenge on Bengal ever since we left the coalition. The Rural Development ministry is at the forefront of it, so that it can hurt our rural vote base for political gains,” said Banerjee.

However, Ramesh informed, that these are constitutionally valid reasons and beyond partisian politics. “Andra Pradesh, which has a Congress led state government also faced similar situation, when it did not conduct Panchayat elections on time. The government stopped giving them Rs3.5 billion for fresh drinking water schemes. Though it has been receiving funds for MGNREGA after much persuation from the state, Rs17 billion is still not been given to the state under various rural schemes, since local body elections had not being held,” the minister said refuting the claims of ill treatment of Bengal.

“Few days ago, 2.8 billion rupees has been sanctioned by the centre under the MGNREGA scheme. Soon another 10 billion rupees will be released for building 2169 kilimoters of rural roads in Bengal,” added Ramesh