After receiving a positive response from Gram Panchayats under the Total Sanitation Campaign, Himachal Pradesh has initiated a special scheme for solid waste management to maintain hygienic living condition in villages.
A special Incentive Fund of Rs 40 crore has been set up by the state government for giving a grant to those panchayats that evolve a system for management of solid waste and its scientific disposal. Government would reward double the money spent by Panchayats annually.
At present there is no system for management of solid waste in rural areas and suburbs. Due to weak financial position of panchayats villages are not able to handle such problems. By implementing the special incentive additional resources can be mobilised to undertake such activities independently.
The idea was suggested by the third State Finance Commission in its recommendations. The commission recommended the Gram Panchayats could avail the incentive against the net fresh additional resource mobilisation by these bodies and Rs 10 crore would be spent annually.
Director of Panchayti Raj, R N Batta said, “The incentive shall be equally distributed under a two-pronged strategy for additional resource mobilisation and raising resources to undertake the statutory function of sanitation, liquid and solid waste management and lighting of village streets and other public places.”
Under the new incentive scheme, the Gram Panchayats would be expected to generate new resources of revenue by either a fresh levy or by way of increase in the existing rates of various taxes, fees or levies being imposed by the Gram Panchayat under Section 100 to 106 of the Himachal Pradesh Panchayati Raj Act, 1994.
A report on the finances of Gram Panchayats in Himachal Pradesh for the year 2005-06 revealed that the income from the tax revenue (tax, fees, fines, rent) of Gram Panchayats in the state constitute 8.5 per cent of the total receipt of a Panchayat and 97 per cent of the Gram Panchayat did not spend on providing civic amenities like sanitation and street lighting due to lack of funds.
They are reluctant to impose taxes due to which these bodies are largely dependent on the state government grant for developmental works.