The Hindu Business Line : Participatory approach vital to improve revenue collections in Karnataka: Panel

KARNATAKA has the potential to increase its non-tax revenue by about 800 per cent from Rs 214.66 crore in 2001-02 from the four social infrastructure sectors like education, health, forest and irrigation, if only it implemented the recommendations made by the Revenue Reforms Commission earlier.

The State's non-tax revenue could go up to an aggregate of Rs 1,800 crore from these sectors if a participatory approach from the stakeholders with appropriate cess and users charges were collected. However, the Commission warned, the quality of service had to be of a very high order to enlist the involvement of the stakeholders in paying the fees.

Though an experiment of users charge in irrigation and a few of these sectors were in practice, absence of assured quality and proper management had resulted in the scheme not yielding desired results.

The Revenue Reforms Commission had made recommendations for participatory approach to development and effective implementation of the functions of various departments through e-governance for improving the revenue collections.

On the expected increase in the non-tax revenue, the Commission felt that overall contribution of non-tax revenue could go up from the present 11 per cent to 25 per cent, which in terms of percentage contribution of State GDP could increase from two to five.

The expected revenue accretion from the forest sector alone could be Rs 1,500 crore from Rs 100 crore in 2001-02, while the figures for irrigation are Rs 100 crore (Rs 23.74 crore), health Rs 150 (Rs 59.15 crore) and education Rs 50 (Rs 31.77 crore).

"The discipline of economics is located on the edge of history. It may not be possible to keep its integrity if it has to come to terms every time with the political complexes of those in power. We always find wealth, employment and resources in the country, but they keep hidden in the well entrenched distorted administrative set up," the Commission said.

Former Chief Minister, Mr Veerappa Moily, who presided over this Commission and earlier Tax Reforms Commission, said the task of the present Commission was to consider the recommended measures regarding the manner in which the quality could be improved so that service charges would be willingly paid, and the scope of enhancement of revenues from sectors like education, minor irrigation, health and forestry.

Combining measures like abolishing the Minor Irrigation Department to amending the Irrigation Act and the Karnataka Panchayat Act of 1993 to empower the gram panchayat sub-committees and consortium of gram panchayats with stakeholders like water users as members to undertake reforms, the Commission felt minor irrigation could reach the targeted segment with equitable revenue generation.