MARGAO
Will the 3rd Finance Commission bail out the Municipal bodies across the State by recommending allocation of additional resources to the local civic bodies in lieu of loss of revenue over the question of withdrawal of Octroi, which has been a steady source of revenue for the municipalities and panchayats over the years.
Blame it on GST or otherwise, the Margao civic body and other civic bodies as well have been struggling to manage the finances, including the crucial question of payment of staff salaries, since the time the GST had come into force around half a decade ago.
In fact, coffers of many a civic body, including the Margao Municipal Council, had run dry after the GST came into force, which saw the withdrawal of Octroi, a duty levied by the local bodies on the fuel pumps located in their respective jurisdiction.
Sources in the Margao Municipal Council informed that the civic body has lost revenue by way of Octroi amounting to crores of rupees over the last five years since the time GST regime came into force. Sadly, the local civic bodies have not been compensated by the government till date, only aggravating the financial situation of the municipal bodies.
When the 3rd Finance Commission headed by former Finance Secretary Daulat Havaldar visited the Margao Municipal Council on October 18, 2022, he had promised that the 3rd Finance Commission has promised to make suitable recommendations to the government to compensate the civic bodies for the revenue loss caused by the merger of Octroi with the Goods and Service Tax (GST).
The Commission, which has been visiting the local bodies is expected to submit a report to the government this 2024.
In fact, Havaldar had sounded sympathetic to the financial constraints faced by the civic bodies since the time Octroi was merged with the GST. Before leaving the civic body, Havaldar had assured that the Finance Commission will make suitable recommendations to compensate the local civic body in lieu of the loss of revenue on Octroi.
