Journal of Management (JOM) Volume 5, Issue 3, May–June 2018, pp. 117–122, Article ID: JOM_05_03_014 Available online at http://www.iaeme.com/jom/issues.asp?JType=JOM&VType=5&IType=3 ISSN Print: 2347-3940 and ISSN Online: 2347-3959 © IAEME Publication

PERFORMANCE EVALUATION OF TOWN PANCHAYATS WITH REFERENCE TO PUBLIC SERVICES IN DISTRICT

T. Kalarani Research Scholar, Department of Commerce Manonmaniam Sundaranar University, Tirunelveli, Tamilnadu, India

Dr. V.M. Selvaraj Associate Professor, Department of Commerce, Sri KGS Arts College, Srivaikuntam, Tamilnadu, India

ABSTRACT Town Panchayat is one of the forms of local self-government in , India. The aim of the town Panchayat is to satisfy local needs of the residents in a balanced and coordinated manner. Increased responsibilities coupled by environmental, economic, administrative, technological and sociopolitical factors have brought out the gap in the income and expenditure ratio. Nevertheless, factors such as decline in fiscal dependence on higher levels, increase in own tax sources of town panchayats in general, are indicators of improves fiscal health. This study opens up further avenues of research in the context of an inter-state comparisons of performance of town panchayats so as to understand the policy implications of other state governments. Another matter of concern is mounting tax arrears. Therefore town panchayat must have a special drive to collect arrear tax that would make several public services adequate. Town panchayat is one of the forms of local self-government in Tamil Nadu, India. The aim of the town panchayat is to satisfy local needs of the residents in a balanced and coordinated manner. The objective is to satisfy the needs with the available resources in such a way as to secure maximum economic and social welfare. newline The functions of the town panchayats consist of tax collection, building regulations, health and hygiene, infrastructure facilities and issue of birth and death certificates, construction and maintenance of local roads, streetlight and provision of water supply. For the effective discharge of these functions they need adequate finance and efficient management. But the local government especially town panchayats are not in a position to provide sufficient funds for various projects due to its inability to enhance tax rates, omission of taxes and fees, ineffective tax collection system and the inability to control expenditure. As a transitional area, the town panchayats faced the problem of lower revenue and higher demand for services resulting in the widening of gap between revenue and expenditure. Most of the town panchayats struggle to bridge this imbalance. In this context, it is proposed to undertake a research on town panchayats mainly to identify the causes for such imbalance in individual town panchayats and of various divisions and grades and to offer suggestions. This research is confined to study

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the performance evaluation of town panchayats with reference to public services in . There are three grades of Town Panchayats in Virudhunagar district. They are the Selection Grade, the Grade I and the Grade II. Out of 9 town panchayats of the district, Seithur, Watrap are classified as Selection Grade town panchayats. Mamsapuram, Cheitiyarpatti, , Kariayapatti are Grade I town panchayats. S.Kodikulam, V.Pudupatti, Mallankinaru is Grade II town panchayats. 540 households were selected from all the three grades of town panchayat area under two revenue divisions of Virudhunagar district for this study. The description of sample households and the evaluation of various services provided by town Panchayats have been discussed. Town panchayats raise huge sums of money as own revenue, besides getting enormous amount of assigned revenue, grants-in-aid and loans which are spent on various heads of capital and revenue works. Though the overall revenue position of town panchayats has been improving steadily over time, the demand for better civic facilities also escalates constantly. But to the greatest dismay of the residents, the standard of municipal service is not forthcoming. Hence the researcher is under an obligation to study whether such expenditure is justified by the public. It is deemed to be prudent to obtain the opinion of the residents who are the best appraisers to evaluate their satisfaction level on capital and revenue works of town panchayats. An interview schedule was used to get the opinion of the residents on the performance of town panchayats. Keywords: local self-government, sociopolitical factors Cite this Article: T. Kalarani and Dr. V.M. Selvaraj, Performance Evaluation of Town Panchayats with Reference To Public Services In Virudhunagar District. Journal of Management, 5(3), 2018, pp. 117–122. http://www.iaeme.com/jom/issues.asp?JType=JOM&VType=5&IType=3

1. SERVICES OF TOWN PANCHAYATS

1.1. Public Services Many Urban Local Bodies were under suspension, supersession and dissolved for a long duration. As a result, the functioning of Local Self Government (LSG) in terms of public utility services was unsatisfactory. There was also the absence of people’s representatives in the administration system.. Aureliano Fernandes analysed Aggrandiser Government and Local Government and informs that Aggrandiser Government in most states continues to hold on to most powers, even as they have been formally devolved to local government through conformity legislations. He says local government is able to provide good motorable roads, implement water supply, electricity or social welfare schemes or even impound stray cattle. He concluded that if LSG has to fulfill its foundational tenets of empowering the community then there is need to transcend the thinking that devolution of powers will alone ensure governance at local level. To fulfil a ‘Social Contract’ with an inclusive participatory, planning and associationalism are essential methodologies to transform India. A scheme to create Model Towns in the next four years was announced by the Andhra Pradesh Chief Minister on 19th October 2005. The scheme envisages ten identified basic amenities for all villages and towns by 2009. This includes the provision of houses, water and

http://www.iaeme.com/JOM/index.asp 118 [email protected] Performance Evaluation of Town Panchayats with Reference To Public Services In Virudhunagar District power connections, and wet latrines besides nutrition and primary education to children, link roads and sanitation facilities for each settlement and pension for the elderly. The central Government is planning to launch a new scheme to improve green urban transport. Named as Green Urban Transport Scheme (GUTS), the scheme aims to develop and improve climate friendly transport system in urban areas across the country.

2. HEALTH AND SANITATION Kousalya has made a study on Coimbatore Municipality with special reference to health and sanitary services from 1966 to 1981. She has shown that expenditure on health and sanitary services have been increasing during the study period. Dharmendra Pratap Yadav stressed the need to relook at the current strategy envisaged to achieve sanitation facilities to all. Well designed, user friendly and clean dry toilets without producing smell, is the only solution to achieve the millennium goals of sanitation.

2.1. Waste Management The Solid Waste Management (SWM) scenario in India presents, by and large a gloomy picture argued by Mazumdar. Reliable data on detailed techno-economic aspects and socio-cultural response to the urgency for change, which are so essential for appropriate planning, is scanty, Public participation is lukewarm. There are however certain inherent good points, such as low per capita waste generation, absence of difficult and complicated waste material, and presence of a large non-formal sector engaged in waste recycling, which should be highlighted and taken advantage of Positive intervention from governmental Organizations, resident associations, and other action groups had set forth a chain of decentralized activities which seem to hold great promise in the area of primary collection, segregation at source, recycling.

2.2. Profile of Virudhunagar District Virudhunagar district in Tamil Nadu was purposively selected as the universe for this study. Through simple convenient random sampling technique, 540 respondents from all the 9 town panchayats were selected. Primary data was collected from the sample respondents with the help of a comprehensive pre-tested enquiry schedule through personal interview method. The district of Virudhunagar is bounded by Sivagangai district and Madurai district on the north, Tirunelveli district to the south and Ramanathapuram District on east and Kerala State to the west and Theni district to the northwest. The total area of this district is 4,288km2 and Virudhunagar District is an administrative district of Tamil Nadu state in southern India. Viudhunagar is the district headquarters. There are 7 municipalities, 11 Panchayat Unions, 9 Town Panchayats, 450 Village Panchayats, 2 Revenue Firkas and 600 Revenue Villages in this district. For the purpose of election, this district is divided into seven Assembly constituencies namely , , , , Virudhunagar, , Tiruchuli.

3. DESCRIPTION OF SAMPLE HOUSEHOLDS An attempt was made to examine the socio-economic characteristics like the size of family, sex, year of residency, status of employment and monthly income of the respondents. In any research, a careful selection of sample population and their size play a pivotal role in bringing out the reliability of such studies. Due care was exercised here to select the sample households from the universe of all the 9 town panchayats in Virudhunagar district. Maximum attention was paid to ensure that the selected households represent properly all grades of town panchayats falling under different revenue divisions within the district.

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A break-up of the 540 selected sample households is arrived at, as 150 are from the Selection Grade, 240 from the Grade I, and 150 from the Grade II town panchayats. The total sample households of 540 included 390 drawn from Sivakasi division, 150 from Arppukottai division.

4. REVIEW OF LITERATURE Kerala Taxation Enquiry Committee has analysed the problem of local finance in Kerala while pointing out the inadequacy of revenue of panchayats. The Committee discovered that the local bodies had not used their tax powers. The Committee recommended setting up of a local finance corporation in Kerala for advancing loans to all local bodies seeking long – term capital resources for financing remunerative project like transport, market, cinema houses hotels etc. A study of State Legislations indicates that the Village Panchayat finances include more than 60 taxes & fees including octroi, property and house tax, profession tax, land tax, taxes/tolls on vehicles, entertainment tax/fee, license fee, tax on non-agricultural land, fee on registration of cattle, sanitation/drainage/conservancy tax, water tax, lighting tax, education cess and tax on fairs and festivals. Panchayat resources could also be augmented through innovative tax/non-tax measurese.g, fee on tourist vehicles, special amenities, restaurants, theatres, cyber cafes, etc. as some Panchayats are doing. Manoj K Teotia has concluded that the deficiencies in urban infrastructure in Punjab can only be mitigated by adequate investments. However, these are beyond the existing fiscal domain of ULBs.Since budgetary transfers and grants by the State Government are inadequate and are not likely to increase, ULBs must mobilize additional local Muncipal resources, access the capital market and introduce reforms in urban management practices for financing urban infrastructure. Narayan et.al had looked at one experiment that had been tired out in Bangalore city. Bangalore had problems in raising its own revenue. The authors identified that lack of modern accounting system for the local body was a reason for not accurately estimating the revenue. They advocated the introduction of the Fund Based Accounting System (FBAS) was the major step in the direction.

5. OBJECTIVES OF THE STUDY The following objectives of our research work  To study the various components of public services of town panchayats and their trend.  To evaluate the services of town panchayats by the public.  To offer viable suggestions for the effective functioning of town panchayatas.

6. RESEARCH METHODOLOGY  In this study the following research mythologies were used  Specific objectives of the study as stated earlier require the use of both primary and secondary data.  Specific tools of analysis and empirical models are also presented.  Methods used for the collection and analysis of data are described in this section.

7. MAJOR FINDINGS  The public were not satisfied with the capital works of town panchayats. A close scrutiny revealed that drainage facility, the most dissatisfied item of all has to be accorded top priority

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followed by public toilets. As people are more aware of health and hygiene, this basic service has to be given maximum importance because people are directly affected by them.  The level of dissatisfaction of capital works was similar in all the two divisions. The significance attached to all capital works showed uniform trend irrespective of divisions.  Public toilets and drainage canals were the most dissatisfied service across all grades of town panchayats. It was also noticed that these two services were considered to be important invariably in all grades. Therefore, equal attention must be paid for drainage and public toilets in all grades of town panchayats.  Mosquito control, the most dissatisfied service, has to be addressed immediately. Street lighting, another basic service, was ranked the best by the respondents.Water supply, the most important item of all services performed by town panchayats, has been looked after well.  In Aruppukkottai divisions, the most dissatisfied services were mosquito control androad maintenance. The respondents were for giving more importance of waste disposal and water supply as they were considered to be essential to personal hygiene and health.  In Sivakasi division, the highly satisfied area was street lighting. Vaccination and health and registeration of birth and death were the most preferred areas.Though ordinary works were undertaken equally in all town panchayats, their utility or effectiveness differed depending upon the managerial capability and skill of the staff members of respective town panchayats.  In all grades of town panchayats, the opinion about various service differed except mosquito control and waste disposal. It led to the conclusion that more funds should be allotted to render mosquito control and waste disposal services satisfactorily. It was understood that out of several routine works, some were given importance in some grades while other services were given importance in other grades depending upon the specific needs of the people. It was brought to the light that all grades of town panchayats have neglected mosquito control and waste disposal services.

8. SUGGESTIONS  Many Urban Local Bodies including town panchayats were under suspension, supersession and dissolved for a long duration. As a result, the functioning of Local Self Government (LSG) in terms of public utility services was unsatisfactory. There was also the absence of people’s representatives in the administrative system. Therefore, election should be held for the local bodies within a period of six months of their dissolution.  All town panchayats should be networked through computers as part of providing infrastructure in panchayat areas. As computerization is an important component of ‘Bharath Nirman Project’, it is imperative to link them with one another and also with a National Panchayat Portal.  In order to develop civic facilities and maintain cleanliness with greater public participation and co-operation, Public Participation Committees (PPCs) headed by non-political persons may be set up in every ward in town panchayats which will meet every three months to discuss issues related to beautification of the town and prepare proposals for its development.  Initiative must be taken by town panchayats to issue error free birth and death certificates. Such certificates may be issued online which saves time and cost to the applicant.  It is recommended that all local bodies should implement rejuvenating traditional rain water harvesting system because water management and water conservation invlove communities and households and the prevalent mindset that water management is the exclusive responsibility of the government must give way to a paradigm built on ‘participative and local management of this critical life source’.

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 It is strongly recommended that town panchayats should propose a scheme to create Model Township with some identified basic amenities like housing, water and power connections, and wet latrines, nutrition and primary education to children, link roads and sanitation facilities.  A few adjoining town panchayats may join together to undertake underground drainage system and install Effluent Treatment Plants (ETP) so that treated water can be used for agricultural purposes, which generates revenue. It also contains environmental problems.  Steps may be taken to prepare an inventory of town panchayat assets by computerzing the details of all properties so that an optimal utilisation strategy for the properties may be formulated.

9. CONCLUSION In fine, the performance evaluation of town panchayats in Virudhunagar district substantiates the fact that the lack of resources is a major constraint which hampers the performance of the town panchayats. Increased responsibilities coupled by environmental, economic, administrative, technological and socio-political factors have brought out the gap in the income and expenditure ratio. Nevertheless, factors such as decline in fiscal dependence on higher levels, increase in own tax sources of town panchayats in general, are indicators of improves fiscal health. However, when this is viewed in the context of growing population and increasing prices, the situation appears to be quite challenging. It therefore, calls for raising the required funds through better use of existing sources of revenue, through other innovative means and proper blend of policies.

REFERENCES

[1] Government of Kerala, “report of the Taxation Enquiry Committee, Chapters 1, 1969, pp 4, 5. [2] KusamLata Kedia, Local Finance in an Indian State”, (Uppal publishing House, New delhi), 1986. [3] Municipal Accounting Reforms: A Case of Tamil Nadu, Urban Finance, 4(3):2001, P.1. [4] Subramania Ayer, State Poanchayat Raj Financial Relations, Yojana, 16 (7), April 30, 1972, pp.339-340. [5] Dange.A.A.,Fiscal Crisisof Urban Local Bodies in India-Issues and Policy Implicatons, IASSI Quarterly,21(3&4),2003,pp.197-206.

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