Slash in central grants: How paperwork failures are hurting panchayats

MAPUSA
The Centre’s decision to slash Goa’s panchayat grants under the 16th Finance Commission by more than 50 per cent has exposed chronic delays in utilisation certificates (UCs) and audited accounts—procedural lapses that lie squarely with the State government, even as panchayats struggle with ground-level constraints.
Officials of the Directorate of Panchayats clarified that while Finance Commission funds are earmarked for village panchayats, the responsibility of submitting UCs to the Centre rests with the State.
Once the Finance Commission releases funds, the State disburses the amounts to panchayats and informs the Centre that the allocation has been made. However, the Centre requires proof of utilisation and audited accounts before continuing or enhancing future allocations.
“Generally, it is the State that submits the utilisation certificate. Panchayats send the UC to the department only after the work is executed and completed,” a senior Panchayat Department official said, pointing out that many works remain “in the pipeline” for long periods.
The official explained that delays often arise from the multi-layered approval process within panchayats. Proposals must pass through Village Development Committees and the Gram Panchayat Development Committee (GPDC), frequently triggering disputes over priorities.
“In one meeting, some members want water tanks, others insist roads are more urgent. These disagreements delay decisions. It’s not easy for panchayats to spend the money,” the official said, adding that the situation in Goa is “very different from other States”.
Compounding the problem are the strict conditions attached to Finance Commission grants.
Spending requires online audits, gram sabha approvals and adherence to specific guidelines—conditions that some panchayats find cumbersome. Financially stronger panchayats, officials noted, often prefer to use their own funds, which come with fewer restrictions.
Despite these challenges, the department maintains that many panchayats are attempting to utilise Finance Commission grants, even if execution timelines vary.
Contrasting views emerged from the field.
Sattari Block Development Officer Manohar Pawar said panchayats in his block have largely completed works under the 15th Finance Commission. “Nearly all works have been completed. Some files are pending due to technical issues,” he said.
Calangute Panchayat secretary Arjun Velip, representing one of the State’s largest and wealthiest panchayats, denied any lapses. “We have submitted utilisation certificates to the department from time to time,” he said.
Camurlim Panchayat secretary Rajesh Asolkar acknowledged that while some panchayats may have struggled, many had utilised the grants.
“Our panchayat has completed substantial work under the 15th Finance Commission. Works worth around Rs 15 lakh are pending, but files are ready and the works will be taken up,” he said.