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Panchayats Face Fund Crunch in Islands; MP Seeks Interim Aid on Lines of Municipal Grant

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Sri Vijaya Puram, October 19: Financial shortages are limiting the ability of Panchayati Raj Institutions (PRIs) in the Andaman and Nicobar Islands to meet rural civic needs and carry out approved development works, prompting Member of Parliament Bishnu Pada Ray to seek interim financial assistance from Lieutenant Governor Dinesh Sharma.

Ray has asked the Lieutenant Governor to consider releasing a Grant-in-Aid to the Islands’ panchayats on the lines of the ₹18.36 crore provided to the Sri Vijaya Puram Municipal Council for essential civic services.

In his appeal, Ray acknowledged the municipal grant, which supports expenditure on internal roads, bridges, water supply, sanitation and other basic amenities. He argued that rural local bodies also need financial support to discharge their responsibilities and respond to public demands.

The Islands’ three-tier panchayati raj system comprises two Zilla Parishads, seven Panchayat Samitis and 70 Gram Panchayats. According to Ray, inadequate financial assistance has left these institutions struggling to meet the basic needs of rural communities.

The problem is particularly acute in North and Middle Andaman, where Gram Panchayats lack the funds to respond to public demands and implement development projects they have already approved. The shortfall has also limited the support available through schemes such as the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Central Road Fund (CRF) and Special Financial Assistance, Ray said.

He has urged the administration to provide an appropriate amount as interim relief, enabling panchayats to address immediate requirements involving roads, bridges, drinking water, sanitation and other essential civic facilities.

Ray’s appeal places the financial capacity of rural local bodies at the centre of the question of service delivery across the Islands. While the municipal council has received a dedicated grant for civic expenditure, he has called for comparable interim support to help panchayats meet pressing needs in rural areas.

He said timely assistance would help rural communities access essential amenities and strengthen the functioning of local self-government institutions. The appeal seeks financial relief for panchayats so they can respond to local requirements while continuing development work within their jurisdictions.

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