Resource Mobilisation by Panchayat

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Resource Mobilisation by Panchayat J.
Chathukulam Centre for Rural Management
(CRM) Kottayam, Kerala
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• Background
• Contributions of
• Decentralisation Community of Solution Exchange
• Query 3
• Response 24
• Compilation 3

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• Queries
• Resource Mobilisation and Tax Collection by
  Panchayats
• Devolution of Funds and Functions
• Availability of Budgetary Allocation

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• Concept and Sharing of Experiences
• Resource Mobilisation
• Panchayat Local Govt.
• Local Governance Good Governance
• New Panchayati Raj
• Ever Changing
• Self Expanding

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• Demand Policies
• Support Programmes

Service Delivery
Panchayats

• Resource Mobilisation is Necessary
• Resource Mobilisation is tool to seek Support
• Resource Mobilisation is tool to Legitimize the
  System
• Resource Mobilisation is tool to give Efficacy
• Resource Mobilisation is tool to give
  Effectiveness

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• Resources ?
• Dominant Impression
• Tax Base
• Tax Rate
• Tax Realisation
• Power to tax is a State Power
• Power to Tax is inherent in the 73 Amendment and
  conformity laws with varying degrees
• Not been exercised by Many Panchayats
• Finances are not properly discussed
• Budget Session ?

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• Reasons for Inefficiencies in Tax Realisation
• Theory of proximity
• Tax collector and tax payer
• Fear of erosion of vote bank in the electoral
  politics

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• The case of Kumaly GP in
• Resource Mobilisation
• Addressed all the inefficiencies in Tax
  Collection
• Own Initiative of Kumaly Gram Panchayat
• SDC-CapDecK CRM only Motivated

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Tax Mobilisation of Kumaly GP (Rs)
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• Kumaly Case Shows
• Through Tax Mobilisation we could Broaden our
  Support Base
• People are ready to pay Tax for good Service
  Delivery
• Theory of Proximity has nothing to do with tax
  collection

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• Other forms of Resource Mobilisation
• Possibility of mobilising resources beyond
  taxation
• Unconventional Resource Mobilisation
• Mobilisation of people for collective action
• Manual labour for community asset creation

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• Other forms of Resource Mobilisation
• Aimed at generating a sense of CSR
• among Petty Trades, Educated and Employed
  People
• Mobilisation of local NGOs, CBOs, Political
  Parties, Class and Mass Organisation
• Educational Institutions
• Instilling value of cooperation
• Civic Mindedness
• Mutual Trust
• Values
• Peace Building Exercise
• Building Social Capital

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• Other forms of Resource Mobilisation
• Sustainable Resource Management
• Judicious use of Resources
• Avoid Wastage of Resources

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• Proactive Visionary Band is Needed
• The need for greater devolution of resource from
  the centre and state
• Demand for implementation of awards of Finance
  Commissions
• Activity Mapping should move with Resource
  Mobilisation Road Map
• Centrally Sponsored Schemes (CSSs)

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• Proactive Visionary Band is Needed
• Finance Commission Grants
• Additional Central Assistance
• Backward Regions Grant Fund
• Untied Fund Grants
• (Budget document in Kerala and Madhya Pradesh)

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• Cases for Unconventional means of
• Resource Mobilisation
• Kuthambakkam GP Tamil Nadu
• Belandur Nitte GPs Karnataka
• Minicoy Island GP Lakshadeep
• Mithri Experience
• Karakulam GPs Kerala
• Manpura GP Madhya Pradesh
• GPs of Khejuri
• Sahid Madangini Blocks West Bengal
• Hardua Aima GP Uttar Pradesh

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What We Need ?

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• Proposal for Action Research
• In order to change their and our lenses
  towards Unconventional means of resource
  mobilisaiton
• We propose an Action Research Project

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• Expected Output
• Concept / Approach / Position Paper
• Reorient Selected Panchayat Functionaries
• Building Good Practices
• Document Best Practices
• Make Panchayat to Panchayat Exposure Visits

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• The Project Needs the Full Support of the
  Decentralisation Community of Solution Exchange

THANKS