Madhya Pradesh Villages Suffer from Insufficient Funds for Development, Reveals Investigation

According to reliable sources, the government received a significant amount of 1115 crore rupees from stamp duty in the fiscal year 2022-23. However, only 322 crore rupees were allotted for Panchayati Raj.

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Srajan Girdonia
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An investigation conducted by Dainik Bhaskar has shed light on the Madhya Pradesh government's claims of developing villages ahead of the upcoming assembly elections. Contrary to the government's assertions, the investigation reveals that the state's 23,006 panchayats are not receiving adequate funds for development, with only a minimal amount being sanctioned.

Nathu Singh Sendhav, the sarpanch of Hatpipalya's gram panchayat Chapda, expressed his concerns to Dainik Bhaskar, stating that the government's claims of village development are far from the truth. He highlighted the meagre amount of funds allocated to the entire panchayat, equating it to what an average family might spend in a year. Over the course of three years, the panchayat has received a mere 15 lakh rupees for development, a paltry sum in comparison to their needs.

The Money Trail

According to reliable sources, the government received a significant amount of 1115 crore rupees from stamp duty in the fiscal year 2022-23. However, only 322 crore rupees were allotted for Panchayati Raj, out of which 150 crore rupees would be used for salaries and honorariums. Additionally, the Finance Department has withheld 64 crore rupees, representing 20% of the total stamp duty amount. This perplexes the government on how to distribute the remaining 108 crores among the 23,006 panchayats.

The available funds have been utilized for various purposes, including new construction projects and repayment of old loans. Unfortunately, during the period spanning from 2018-19 to 2022-23, the Panchayati Raj Department received less than 2018 crore rupees in total. The pressing question now arises: how will the remaining 108 crores be utilised for essential work, such as new construction and loan repayments? The Panchayati Raj Department plans to tap into the school cess amount, but there are concerns that it might fall short at times.

Jitendra Singh Shobhakhedi, a representative, disclosed that they had appealed to the Chief Minister for stamp duty revenue to be allocated to the Gram Panchayats, and the Chief Minister has given consent to their request. However, it remains to be seen how this decision will be implemented effectively. Mahendra Singh Sisodia, the Minister of Hind, echoed the sentiment that development would occur with the funds received, without any doubt.

Administration’s Reaction

Meanwhile, Malay Srivastava, the Additional Chief Secretary of Panchayat, remains optimistic, asserting that they will develop with the available funds. However, the inadequacy of funds allocated to panchayats across the state casts doubt on the government's commitment to rural development.

As the assembly elections approach, it is crucial for the Madhya Pradesh government to address this issue promptly and ensure that the promised development reaches the grassroots level. The well-being of the villages and their inhabitants depends on the adequate allocation of funds, enabling them to embark on essential infrastructure projects and repay outstanding loans. Only through genuine commitment and appropriate financial support can the government fulfil its pledge to uplift rural communities and foster their growth.