Pointing out the lack of financial resources as the great stumbling
block in the effective functioning of local bodies, the commission made the
It emphasised that village panchayats should be entrusted with more
powers like judicial jurisdiction in petty cases, incurring expenditure
on minor village works, village schools, small fuel and fodder reserves,
etc. The panchayats should be given adequate sources of income.
It emphasised the importance of sub-district boards to be
established in every taluka or tehsil, with separate spheres of duties
and separate sources of revenue for sub-district boards and the district
It urged the withdrawal of existing restrictions on their powers
of taxation, and also, the stoppage of regular grants-in-aid from
provincial governments except for undertaking large projects.
The municipalities might undertake the responsibility for primary
education and, if willing, for middle vernacular schools, otherwise the
Government should relieve them of any charges in regard to secondary
education, hospitals, relief, police, veterinary works, etc.