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Karnataka CM Shivakumar announces measures to strengthen Gram Panchayat finances

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Bengaluru (Karnataka) | October 14, 2026 10:01:58 PM IST
Karnataka Chief Minister DK Shivakumar on Wednesday said the state government would take necessary measures to improve the financial condition of Gram Panchayats and strengthen decentralised governance.

Speaking after chairing a meeting of the Karnataka State Decentralisation Planning and Development Committee at Krishna, his home office, Shivakumar said a committee headed by the Rural Development Minister would be formed to examine the implementation of recommendations on financial sharing and administrative reforms in the Fifth State Finance Commission report.

The committee would identify recommendations that could be implemented and submit a report, he said.

Citing the Fifth State Finance Commission report, Shivakumar said Rs 1,261 crore had been released to Gram Panchayats, Rs 557 crore to Taluk Panchayats and Rs 183 crore to Zilla Panchayats.

The Chief Minister also stressed the need to ensure that urban local bodies function effectively in accordance with the provisions of the 74th Constitutional Amendment. Consultations would be held with experts from National Law College on suitable amendments to the relevant Acts, he said.

Shivakumar said projects in urban local bodies should be formulated and implemented through Ward Sabhas, on the lines of Gram Sabhas.

He directed District Planning Committees at district, taluk and village levels to hold meetings once every three months and submit reports.

The Chief Minister said funds would be provided to establish Project Management Units at district and taluk levels.

Referring to the 'Janara Yojane' initiative announced in the state budget, he said the programme aims to capture demands from the grassroots and incorporate them into the state budget.

The Rural Development and Urban Development departments have been directed to issue suitable guidelines and develop the necessary software for implementing the initiative, he said.

Shivakumar added that all departments had been instructed to prepare responsibility maps outlining their roles in implementing programmes related to Gram Panchayats, Taluk Panchayats and Zilla Panchayats. The departments must submit the maps within the stipulated time, he said.

On the proposal to establish the Karnataka Panchayat Administrative Service, Shivakumar said a proposal would be sought from the concerned department minister.

He also said the state would submit a proposal to the GST Council seeking a share of GST revenue for rural and urban local bodies.

The Chief Minister directed officials to expedite the process of fixing Grama Thana boundaries using data from the Centre's SVAMITVA scheme, with the Panchayat Raj and Revenue departments instructed to coordinate on the matter.

Shivakumar further noted that Gram Panchayat revenues had declined after the Karnataka Industrial Areas Development Board (KIADB) took back the power to levy taxes on industries from Gram Panchayats.

He said the Act provides for 30 per cent of the property tax collected by the authority to be shared with Gram Panchayats. Officials were directed to provide complete details of the taxes collected by the authority so far and the amounts shared with Gram Panchayats. (ANI)

 
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