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Patna,(BiharTimes): The state cabinet, in accordance with the recommendations of D R Mehta report, decided to give 7.5% of total tax collection of the state government to the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).
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Talking to newsmen cabinet secretary Ravikant, said while 70% of the earmarked share will go to the PRIs, 30% will go to ULBs. This formula of sharing tax collection will remain effective up to 2014-15.
He said the share of PRIs will be distributed among panchayats (70%), panchayat samitis (20%) and zila parishads (10%).The PRIs will spend the amount on salary payment, drinking water supply, village roads, toilets and street lights.
The share of the ULBs will be divided on the basis of population, area and number of BPL population. The amount will not be spent on salary payment by the ULBs. The funds will be spent on parking, drinking water supply, local roads, toilets, street lights and eradication of dry latrine scavenging system.
As per the Tuesday cabinet decision, university teachers will now not have to wait for regular salary payment as the state cabinet sanctioned over Rs 1,144 crore for the purpose and released Rs 982.92 crore.
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