Ministry of Defence sets up panel to review Cantonment Boards’ finances

The Defence Ministry has formed a six-member panel to review Cantonment Boards’ finances, explore revenue reforms, and suggest measures for sustainability, raising concerns of possible mergers.

Hyderabad: The Ministry of Defence (MoD) has constituted a six-member panel to review the financial position of Cantonment Boards in the country.

The panel will examine the financial position of Cantonment Boards, including existing sources of revenue and scope for augmentation and assess tax and non-tax revenue potential, including revision of rates, improvement in assessment, and collection efficiency. It will also identify measures to improve financial stability and reduce dependence on government grants.

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The panel will make recommendations for short-term measures implementable within one year, medium-term measures implementable within three years, and long-term reforms, including a roadmap for achieving sustainable and self-sufficient Cantonment Boards.

The panel was advised to submit its interim report by March 31 and the final report, along with specific and actionable recommendations, by April 15 to the Director General, Defence Estates, the communication said.

Cantonment Vikas Manch, a SCB-based NGO, general secretary Sanki Ravinder Babu said the setting up of the panel to examine the financial position of the Cantonment Boards indicated that the MoD may not sanction grants-in-aid in future to the Cantonment Board. He said it may lead to the merger of Cantonment Boards into the neighbouring municipal corporations.