Delay in local body elections impacts fund utilisation: Chairman of 5th State Finance Commission

C. Narayanaswamy discusses delays in local body elections impacting fund utilization at a consultative meeting in Shivamogga.

Shivamogga

C. Narayanaswamy, Chairman of the Fifth State Finance Commission, said on Monday that the local bodies have not been able to make proper use of funds due to the delay in holding elections.

He was speaking at a consultative meeting in Shivamogga, with the officers of Shivamogga and Chitradurga districts. The funds were not released because the elections were not held for the local bodies. Due to the delay in holding the election, the Finance Commission of India did not release ₹2,100 crore to the local bodies.

The term of the 15th Finance Commission would end in March 2026. If the elections were held promptly, the funds could be utilised, he said.

The State Finance Commission, constituted in October 2023, would submit its report to the Governor by June this year, after holding consultations with representatives of urban and rural local bodies on the devolution of funds.

The commission had already held meetings in 22 districts, the Chairman stated.

Commenting on the administrative reforms in local bodies, the Chairman stressed the need for the recruitment of people with technical and professional skills. The local bodies should find ways to increase their resources. The funds meant for development works should not be diverted to other expenses.