G.O. (Ms) No.118, Amendment to the Member of Legislative Assembly Constituency Development Scheme Guidelines, 2023-2024

What the government changed

G.O. (Ms) No.118 dated 27 September 2023, issued by the Rural Development and Panchayat Raj (SGS.1) Department, amends the fund release and financial management guidelines issued for the Member of Legislative Assembly Constituency Development Scheme for 2023-2024.

The earlier guidelines required the Director of Rural Development and Panchayat Raj to draw and disburse scheme funds to all districts based on the annual budget estimate. The amended guidelines retain that responsibility and add a requirement to open a Public Deposit Account for maintaining the funds and carrying out further financial operations.

Public Deposit Account arrangements

The amended Member of Legislative Assembly Constituency Development Scheme guidelines specify the following arrangements:

• The account is named the Member of Legislative Assembly Constituency Development Scheme Account.
• The Director of Rural Development and Panchayat Raj is the administrator of the account.
• The account will be maintained at the Pay and Accounts Office (South), Chennai-35.
• The Director of Rural Development and Panchayat Raj will continue to draw and disburse funds to all districts based on the annual budget estimate.

The amendment was issued in both English and Tamil.

Financial background

The Member of Legislative Assembly Constituency Development Scheme received administrative sanction of Rs.702 crore for 2023-2024, with Rs.3 crore allocated per constituency. Financial sanction was also given for Rs.351 crore, representing 50 percent of the Rs.702 crore budget allocation.

The Government had released Rs.351 crore as the first instalment. The source records that the funds had not yet been drawn and distributed to districts because the Finance Department (Ways & Means) instructed that a Public Deposit Account should be opened for operating the scheme funds. In previous financial years, the funds had been deposited in a savings bank account under the scheme.

Who is affected

The amendment directly concerns the Director of Rural Development and Panchayat Raj, district administrations, the Pay and Accounts Office (South), and other public authorities involved in administering or accounting for scheme funds. Members of the Legislative Assembly and local implementing bodies may be affected by how constituency development funds are released.

The document contains no provision changing land ownership, land classification, planning permission, registration or private property rights. Its subject is the government account used to manage constituency development scheme funds.