MARGAO
There is good news in store for Municipal and Panchayat bodies across the State. The 3rd Finance Commission has promised to make suitable recommendations to the government to compensate the civic bodies for revenue loss caused by merger of Octroi with Goods and Service Tax (GST).
The Finance Commission, however, sent across a message not to rely only on government grants for sustenance, but initiate measures to mop up additional revenue by going for revenue generating projects.
The Finance Commission comprising of former Goa Finance Secretary Daulat Havaldar, IAS has also called for the timely utilization of the central grants sanctioned under the 14th & 15th Finance Commissions and not to put the funds in fixed deposits.
The 3rd Finance Commission which has been constituted by the Goa government has been visiting the municipal bodies to seek details over the financial position of the local bodies. After completing the exercise in the civic bodies, the Commission will visit the panchayats before submitting its recommendations to the government in 2024.
Daulat Havaldar and his team visited the Margao Municipal Council on Tuesday as part of the ongoing exercise, wherein he conceded that the civic bodies have lost precious revenue on the Octroi head after Octroi was merged with the GST in 2017. “I understand that the Municipal bodies have financial constraints since the time Octroi was merged with the GST”, he said.
He added: “When the 3rd Finance Commission submits its report to the government, it will make suitable recommendations to compensate the civic bodies in lieu of loss of revenue over Octroi”.
He, however, said the responsibility lies on the civic bodies to make representations to the government in the event Octroi arrears have not been cleared as yet, saying the Finance Commission has no role to play in the payment of Octroi arrears.
Referring to the issues specific to the commercial capital, Havaldar said Margao is not only a commercial capital, but the State’s cultural capital. While saying the MMC has set out an agenda to resolve the garbage issue, Havaldar said the city should explore the possibility of introducing pay parking in the city to generate revenue and to regulate traffic. “The capital city is earning Rs 10 lakh by way of pay parking charges. The MMC could also explore the same”, he suggested, but hastened to add that the civic body should take the people into confidence before taking measures towards enhancement of taxes.
Saying Sonsodo is still a burning issue, Havaldar said the MMC has outsourced door-to-door waste collection by paying huge amount. “Door-to-door waste collection was introduced by the City Corporation of Panjim, but unlike Margao, the CCP workers are carrying out the exercise, Margao should think on it”, Havaldar said when he found that the MMC is shelling out Rs 30 lakh every month on outsourcing of door-to-door waste collection.
On non-utilization of government grants to the MMC running into crores of rupees, Havaldar said the grants are sanctioned to take up projects and not to put the funds in fixed deposits and earn interest.
The civic bodies should take up revenue generation commercial projects to supplement the revenue, saying the time has come to spend the grants less on roads and gutters and more on revenue generating commercial projects.
