Karnataka will strengthen finances of local bodies: Chief Minister D.K. Shivakumar

Chief Minister D.K. Shivakumar chairing a meeting of the Karnataka State Decentralisation Planning and Development Committee in Bengaluru on Wednesday (October 14). | Photo Credit: ANI The Karnataka government will take steps to improve the financial position of gram panchayats and strengthen decentralised governance, Chief Minister D.K. Shivakumar said on Wednesday (October 14).Chairing a meeting of the Karnataka State Decentralisation Planning and Development Committee here, he said a committee headed by the Rural Development and Panchayat Raj Minister would be formed to examine the recommendations of the Fifth State Finance Commission on fund allocation and administrative reforms. The committee would review the recommendations that could be implemented and submit a report, he said.Under the Fifth State Finance Commission’s report, ₹1,261 crore has been released to gram panchayats, ₹557 crore to taluk panchayats and ₹183 crore to zilla panchayats, Mr. Shivakumar said.The government would also take steps to improve the functioning of urban local bodies in keeping with the spirit of the 74th Constitutional Amendment. Experts from the National Law School of India University would be consulted on possible amendments to the relevant laws, he said.Ward-level planningThe Chief Minister said urban local bodies should plan and implement development works through ward sabhas on the lines of gram sabhas. District, taluk and village-level planning committees have already been constituted, and they have been directed to meet once every three months and submit reports.The Rural Development and Panchayat Raj and Urban Development departments have been asked to frame guidelines for implementing the ‘People’s Plan’, announced in the State Budget, to incorporate public needs from the grassroots into the State Budget. The departments should also develop the necessary software and provide funds to establish planning management units at the district and taluk levels, he said.All departments have been asked to prepare responsibility maps defining their roles in implementing programmes related to gram, taluk and zilla panchayats and submit them within the stipulated time.GST share for local bodiesResponding to the proposal to provide rural and urban local bodies a share in GST revenue, the Chief Minister said the government would submit a proposal to the GST Council. A proposal to establish the Karnataka Panchayat Administrative Service would also be sought from the Minister concerned.He directed officials to expedite the demarcation of gram thana boundaries using data from the Centre’s SVAMITVA scheme, with the Panchayat Raj and Revenue departments working in coordination.The government has also taken note of the loss of revenue to gram panchayats after the Karnataka Industrial Areas Development Board (KIADB) took over their power to levy taxes on industries. The law provides for 30% of the property tax collected by the authority to be shared with gram panchayats.The Chief Minister asked officials to submit details of the total tax collected by the authority so far and the amount distributed to gram panchayats. Published - October 14, 2026 08:12 pm IST