Panchayat Raj Minister Jupally Krishna Rao said contractors who took up government works must register themselves and pay taxes as per the new GST regime at the rate of 5 per cent for earthworks and 12 per cent for non-earth or concrete works.
He admitted that there was a delay in the release of the Central funds but said the State government was releasing necessary funds for speedy completion of works in rural areas which are later compensated by the Centre.
Replying to a question in the Council on Monday, Krishna Rao said the Centre had released Rs 1,245 crore in 2014-15, Rs 697 crore in 2015-16, Rs 935 crore in Rs 2016-17 and Rs 940 crore in 2017-18. He said all the Central funds were spent within the specified timeframe of respective financial years.
“There was a sudden fall in fund releases after 2014-15 as the Centre is not releasing Backward Regions Grant funds to gram panchayats anymore,” he explained.
The Minister said the State government would soon bring out a new Panchayat Raj Act as announced by the Chief Minister earlier which would empower the gram panchayats to decide on expenditure of funds on needy schemes or activities.
In response to another question raised by the legislators, Rao said the government was hiring sanitation workers in gram panchayat on a need basis and their salaries were hike by the State government from Rs 1,500 for part-time employees and Rs 2,000 full-time employees to Rs 4,000 and Rs 5,000, respectively. He stated that remunerations were increased to even temporary workers, especially after the State formation.
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