Guidelines for availing 14th Finance Commission Performance Grant by Village Panchayats from the year 2017-18 to 2019-20
The Government of Tamil Nadu, Rural Development and Panchayat Raj Department issued G.O. Ms. No.31 on 28 February 2019, setting eligibility, application, release and utilisation guidelines for 14th Finance Commission Performance Grants to Village Panchayats for 2017-18 to 2019-20. The guidelines affect Village Panchayats and the officials processing their grant claims, rather than private property ownership or land transfers.
What the guidelines govern
The Rural Development and Panchayat Raj Department guidelines govern conditional Performance Grants payable to Village Panchayats under the 14th Finance Commission framework. Of the total grants-in-aid recommended for Village Panchayats, 90% is released as Basic Grant and 10% is sanctioned as Performance Grant.
The guidelines apply to claims for 2017-18, 2018-19 and 2019-20. They principally affect Village Panchayats, Panchayat Presidents, Panchayat Secretaries, audit officers, Block Development Officers, District Collectors and the Directorate of Rural Development and Panchayat Raj.
Eligibility conditions
A Village Panchayat must meet both mandatory conditions:
- Submit audited accounts relating to a year not earlier than two years before the claim year.
- Show an increase in Own Source Revenue over the preceding year, as recorded in the audited accounts.
Own Source Revenue includes tax and non-tax revenue. Village Panchayats must ensure full assessment of House Tax, Professional Tax, Dangerous and Offensive Trade revenue and other own revenue sources, finalise demand and complete collection before the end of March each year.
The Performance Grant is subject to a maximum cap of five times the Basic Grant allocation for the relevant year.
Application and verification
The claim format must carry the joint signatures of the Village Panchayat President, Zonal Deputy Block Development Officer and Block Development Officer (Village Panchayat). The Deputy Block Development Officer (Audit) must certify the relevant audit report and increase in revenue collection, with a specific eligibility recommendation.
Key checks include:
- Review by the Block Development Officer (Village Panchayat).
- Consolidation and a 10% super-check by the Assistant Director (Panchayats).
- A further 10% super-check by the Assistant Director (Audit).
- Finalisation of eligible Panchayats by the District Collector.
- Submission of the consolidated eligible list to the Director of Rural Development and Panchayat Raj.
The District Collector must also ensure that the audit report was placed before the Grama Sabha and that the required online accounting submissions were completed.
Use and release of funds
Eligible Village Panchayats may use the grant to provide basic services within their assigned functions under the Tamil Nadu Panchayats Act, 1994, after preparing a Village Panchayat Development Plan.
The Director of Rural Development and Panchayat Raj calculates each eligible Panchayat's grant and releases funds to District Collectors. District Collectors must transfer the money immediately and cannot retain it at district level. Expenditure must be documented, and utilisation certificates must be collected and consolidated for submission to the Directorate.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this notification change my land ownership or property rights?
No property ownership or land transfer provisions are stated. The notification deals with Performance Grant eligibility, processing and use by Village Panchayats.
What must a Village Panchayat do to qualify for the Performance Grant?
It must submit audited accounts from the required period and show an increase in tax and non-tax Own Source Revenue over the preceding year.
What can a Village Panchayat spend the grant on?
The grant may be used for basic services within the Village Panchayat's assigned functions under the Tamil Nadu Panchayats Act, 1994, after preparation of a Village Panchayat Development Plan.
Can the District Collector keep the grant at district level?
No. The District Collector must release the grant to the concerned Village Panchayat immediately after receiving funds from the Director of Rural Development and Panchayat Raj.
