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Local Bodies) GOVERNMENT OF SIKKIM MEMORANDUM TO THE FOURTEENTH FINANCE COMMISSION VOLUME – IV MEMORANDUM and SUBSIDIARY POINTS (NOTES ON TOPICS – LOCAL BODIES) FINANCE, REVENUE & EXPENDITURE DEPARTMENT Part 1 - Memorandum on Local Bodies ............................................................................................ 1 I. Introduction ................................................................................................................................. 1 II. Evolution of Local-Self Governance in Sikkim ............................................................................ 1 III. Status of Decentralized Governance and Devolution ............................................................... 4 IV. Recommendations of State Finance Commissions and Action Taken by the Government .... 19 V. Status of Recommendations of Central Finance Commissions ................................................ 42 VI. Suggested Approach for the Fourteenth Finance Commission for Local Bodies in Sikkim ..... 47 Part 2 – Subsidiary Points on Local Bodies in Sikkim ....................................................................... 54 I.Issues on Which Detailed Notes are required: ........................................................................... 54 Part 3 – Schedules and Statements ................................................................................................. 60 Schedule 1: Basic Information on Local Bodies in Sikkim ............................................................. 60 Schedule 1A. Details of State Finance Commissions (SFC) – Constitution and Submission ......... 63 Schedule 2A. Transfer of Resources to Local Bodies – District Panchayats ................................. 64 Schedule 2B. Transfer of resources to Local Bodies – Block Panchayats ..................................... 65 Schedule 2C. Transfer of Resources to Local Bodies – Village Panchayats .................................. 66 Schedule 2D. Transfer of Resources to Local Bodies – Municipal Corporations .......................... 67 Schedule 2E. Transfer of Resources to Local Bodies - Municipalities .......................................... 68 Schedule 2F. Transfer of Resources to Local Bodies – Town Panchayats .................................... 69 Schedule 3A. Functions/ Services Transferred to PRIs and Expenditure Thereon ....................... 70 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - GMC ........... 71 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - NMC ........... 72 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - GNP ............ 73 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - JNP ............. 74 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon – MNP .......... 75 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - RNP ............ 76 Schedule 3B. Functions / Services transferred to ULBs and Expenditure thereon - SNP ............. 77 Schedule 4A. Expenditure and Sources of Revenue/Capital of PRIs ............................................ 78 Schedule 4B. Expenditure and Sources of Revenue of PRIs – East District .................................. 80 Schedule 4B. Expenditure and Sources of Revenue of PRIs – West District ................................ 81 Schedule 4B. Expenditure and Sources of Revenue of PRIs – North District ............................... 82 Schedule 4B. Expenditure and Sources of Revenue of PRIs – South District ............................... 83 Schedule 4C. Expenditure and Sources of Revenue of ULBs ........................................................ 84 Schedule 4D. Expenditure and Sources of Revenue of ULBs – East District ......................... 86 Schedule 4D. Expenditure and Sources of Revenue of ULBs – West District ....................... 87 Schedule 4D. Expenditure and Sources of Revenue of ULBs – North District ...................... 88 Schedule 4D. Expenditure and Sources of Revenue of ULBs – South District ...................... 89 Schedule 5A.Own Revenue(Internal Revenue Mobilization)of PRIs ............................................ 90 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – GMC ............................... 91 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – NMC ............................... 92 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – GNP ................................ 93 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – JNP ................................. 94 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – MNP ............................... 95 Schedule 5B.Own Revenue(Internal Revenue Mobilization)of ULBs – RNP................................. 96 Schedule 5B.Own Revenue (Internal Revenue Mobilization)of ULBs – SNP ................................ 97 Schedule 5C. Arrears of Collection(Internal Revenue Mobilization ) of PRIs ............................... 98 Schedule 5D. Arrears of Collection (Internal Revenue Mobilization) of ULBs ............................. 99 Schedule 6A. Expenditure of PRIs ............................................................................................... 100 Schedule 6B. Expenditure of ULBs - GMC .................................................................................. 101 Schedule 6B. Expenditure of ULBs - NMC .................................................................................. 104 Schedule 6B. Expenditure of ULBs - GNP ................................................................................... 106 Schedule 6B. Expenditure of ULBs - JNP ..................................................................................... 108 Schedule 6B. Expenditure of ULBs - MNP .................................................................................. 110 Schedule 6B. Expenditure of ULBs - RNP .................................................................................... 112 Schedule 6B. Expenditure of ULBs – SNP ................................................................................... 114 Schedule 7A. Water Supply, Sanitation and Irrigation of PRIs ................................................... 116 Schedule 7B. Water Supply, Sanitation and Irrigation of ULBs .................................................. 117 Schedule 8B. Status of Accounts of ULBs ................................................................................... 119 Part 4 - Annexures ......................................................................................................................... 120 Annexure I – Recommendation of State Finance Commission & Action Taken. ........................ 120 Recommendation of First State Finance Commission ............................................................... 120 Recommendation of Second State Finance Commission ........................................................... 121 Annexure II – Notification regarding taxes, rates and fees to be levied by the GPUs ............... 141 Annexure III – Notification regarding the constitution of State Finance Commission, Sikkim . 143 Annexure IV - Name of revenue blocks under each Gram Panchayat (Sub-Division wise) ....... 147 Annexure V – Area and Population under Gram Panchayat Unit .............................................. 158 Annexure VI – Area and Population under Municipalities ......................................................... 162 Part 5–Revised Statements ............................................................................................................ 163 A. Rural Local Bodies .................................................................................................................. 163 B. Urban Local Bodies ................................................................................................................. 186 Part 1 - Memorandum on Local Bodies Introduction The last two decades has witnessed remarkable trend towards increasing decentralization throughout the world. The focus was towards devolution of political, administrative and fiscal authority to local units. India has also kept pace with this global trend. In 1993, the Government of India passed a series of constitutional reforms (the 73rd and 74th Constitutional Amendment Acts), which were intended to empower and democratize local bodies both in the rural and urban areas. The 73rd and 74th Constitutional Amendment Acts provided constitutional status to local bodies in the country which are seen as the third tier of the government. The passage of these Acts indicates a fundamental restructuring of the governance and administrative system of the country, based on the philosophy of decentralization and power to the people. Sikkim introduced its Panchayati Raj Act in 1993 to conform to the 73rd Constitutional Amendment. The State has also conformed to the 74th Constitutional Amendment Act by bringing in the enabling legislation. The Sikkim Municipalities Act 2007 was introduced in March 2007 for setting up of Urban Local Bodies in the state. II. Evolution of Local-Self Governance in Sikkim Though Sikkim introduced its Panchayati Raj Act in 1993 to conform to the 73rdAmendment Act, the roots of Panchayati Raj in the State dates back to the time when Sikkim was a kingdom under the Namgyal Dynasty. During this period there were landlords or Zamindars who were also called Kazi. Under the Kazi there were Mandals and Karbaris
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