G.O.(Ms)No.108, Guidelines for Utilization of 14th Central Finance Commission Basic Grants, 2015
The Municipal Administration and Water Supply (MA2) Department of the Government of Tamil Nadu issued Government Order (Ms.) No. 108 dated 24 July 2015, approving guidelines for urban local bodies to use Basic Grants awarded by the 14th Central Finance Commission. It allocates the grants among Municipal Corporations, Municipalities and Town Panchayats for 2015 to 2020, and assigns 10 percent of Chennai Corporation's share to the Chennai Metropolitan Water Supply and Sewerage Board.
What the government order covers
Government Order (Ms.) No. 108 dated 24 July 2015 governs the distribution and permitted use of 14th Central Finance Commission Basic Grants by urban local bodies in Tamil Nadu. The award period runs from 2015 to 2020.
The grants are intended to support and strengthen basic municipal services. The document does not contain provisions concerning property ownership, patta, land classification, planning permission or property registration.
Who is affected
The guidelines approved by the Municipal Administration and Water Supply (MA2) Department apply to Municipal Corporations, Municipalities and Town Panchayats. They also affect the Chennai Metropolitan Water Supply and Sewerage Board because part of Chennai Corporation's allocation is assigned to that Board.
Residents and property owners may be affected indirectly through municipal spending on water supply, sewerage, sanitation, roads, street lighting and other local services.
Distribution of Basic Grants
The Government of Tamil Nadu applies the following sharing ratio among the three tiers of urban local bodies:
- Municipal Corporations, including Chennai, receive 40 percent.
- Municipalities receive 31 percent.
- Town Panchayats receive 29 percent.
- The total Basic Grant allocation for 2015 to 2020 is Rs. 6,585.84 crore.
- Of this total, Municipal Corporations receive Rs. 2,634.33 crore, Municipalities receive Rs. 2,041.61 crore and Town Panchayats receive Rs. 1,909.90 crore.
- Ten percent of Chennai Corporation's share is allocated to the Chennai Metropolitan Water Supply and Sewerage Board.
The 14th Central Finance Commission recommended that grants for Municipalities be divided into 80 percent Basic Grant and 20 percent Performance Grant. It also recommended release of grants in two instalments each year, in June and October, with 50 percent of the annual Basic Grant released as the first instalment.
Permitted uses
The approved guidelines require urban local bodies to spend the grants only on basic services within their assigned functions. Listed services include:
- Water supply and underground sewerage schemes.
- Sanitation, including septage management.
- Sewerage and storm water drains.
- Solid waste management.
- Electricity used for water supply, sewerage treatment and street lighting.
- Roads, footpaths and street lights.
- Parks and playgrounds.
- Burial and cremation grounds.
Urban local bodies may use the funds to augment water supply and sewerage facilities and to support their financial contribution to major municipal infrastructure schemes.
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 Government Order (Ms.) No. 108 change my patta or land ownership?
No property title or patta provisions are set out in the document. It deals with the distribution and use of Central Finance Commission grants by urban local bodies.
Can an urban local body use these grants for any purpose?
No. The guidelines require the grants to be spent only on listed basic services within the functions assigned to the urban local body.
How are the Basic Grants divided among Tamil Nadu urban local bodies?
Municipal Corporations, including Chennai, receive 40 percent, Municipalities receive 31 percent and Town Panchayats receive 29 percent.
Does the Chennai Metropolitan Water Supply and Sewerage Board receive part of Chennai Corporation's grant?
Yes. The Government of Tamil Nadu allocated 10 percent of Chennai Corporation's share under the 14th Central Finance Commission award to the Chennai Metropolitan Water Supply and Sewerage Board.
