Financial crisis hits GPs due to tax distribution with MIDC

GPs in dire straits, impacting crucial development works in the area

Chhatrapati Sambhajinagar: Gram Panchayats (GPs) in Chhatrapati Sambhajinagar, particularly in Waluj, are grappling with financial turmoil as the distribution of taxes between the Maharashtra Industrial Development Corporation (MIDC) and the Gram Panchayat (GP) has taken a toll on local finances. The intricate tax-sharing arrangement has left GPs in dire straits, impacting crucial development works in the area.

Formerly, GPs in Ranjangaon, Jogeshwari, Waldgaon, Waluj, Ghanegaon, and Vitawa villages received taxes directly from companies operating in the industrial zones, facilitating various civic amenities for the residents. However, five years ago, industrialists lobbied for MIDC to assume tax collection responsibilities, citing alleged coercion by GPs. The government acceded, granting MIDC the authority to collect taxes and share half the proceeds with GPs.

This change has had profound consequences on local development initiatives. With only 50 percent of the taxes now available to GPs, not only have critical development projects been impeded, but meeting financial obligations, including employee salaries, has become a formidable challenge.

Local leaders, including Sarpanch Yogita Mahalkar of Ranjangaon, Sarpanch Yogita Argade of Jogeshwari, Sarpanch Saidabi Pathan of Waluj, and Sarpanch Amar Dangar of Waldgaon, voiced their concerns about the impediment to development works and the growing discontent among citizens directed at GP officials.

The members said that the predicament is exacerbated by the rapid population growth fueled by the industrial sector, straining GP resources allocated from government funds.