G.O. (Ms) No.120, Sixth State Finance Commission Grant, 2024-25
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.120 dated 23 July 2024, releasing Rs.904.20 crore under the Operations, Maintenance and Deficit Grant Fund for 2024-25, based on Sixth State Finance Commission recommendations. The money supports rural local bodies, utility dues, libraries, training, welfare, school maintenance and other approved needs, and the document does not state any change to private land ownership, classification or approval procedures.
What the government order does
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.120 dated 23 July 2024 to release Rs.904.20 crore under the Operations, Maintenance and Deficit Grant Fund for 2024-25. The allocation follows recommendations of the Sixth State Finance Commission and approvals of the State Level Committee.
The Sixth State Finance Commission grant is shared between rural and urban local bodies in the ratio of 51:49 for the award period from 2022-23 to 2026-27. The rural local body share is divided among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:39:6.
Horizontal distribution among rural local bodies uses these weights:
- Population, 65 per cent.
- Area, 15 per cent.
- Scheduled Caste and Scheduled Tribe population, 20 per cent.
Approved allocations
G.O. (Ms) No.120 dated 23 July 2024 provides the following amounts:
- Rs.120 crore for long-standing Village Panchayat water charge dues to the Tamil Nadu Water Supply and Drainage Board.
- Rs.240 crore for long-pending Village Panchayat electricity dues to the Tamil Nadu Generation and Distribution Corporation.
- Rs.33.60 crore to the Directorate of Libraries as advance library cess.
- Rs.60 lakh for Rural Regional Training Institutes and capacity building.
- Rs.336 crore for rural local bodies identified as having fund deficits.
- Rs.69 crore for peri-urban Panchayats.
- Rs.30 crore for hill area Panchayats.
- Rs.5 crore for the Sanitary Workers Welfare Board.
- Rs.60 crore for minor works and maintenance of school infrastructure.
- Rs.10 crore as a reward relating to the Forest Rights Act, as listed in the budget table.
Payments for water and electricity dues are to be handled through the Tamil Nadu Simplified Panchayat Accounting System by the concerned Village Panchayats.
Who may be affected
G.O. (Ms) No.120 dated 23 July 2024 directly concerns rural local bodies, government agencies receiving funds, schools under local body jurisdiction, training institutes and the Sanitary Workers Welfare Board. Residents may experience indirect effects through maintained water and electricity services, school repairs and better-funded Panchayats.
The document contains no stated provision changing a property owner’s title, patta, land classification, planning permission or land-use status.
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 G.O. (Ms) No.120 change my patta or land classification?
No such change is stated. The document deals with grants for rural local bodies and does not set out changes to patta, ownership, land classification or land use.
Will Village Panchayat water and electricity arrears be paid from this grant?
The allocations include Rs.120 crore for long-standing water charge dues to the Tamil Nadu Water Supply and Drainage Board and Rs.240 crore for long-pending electricity dues to the Tamil Nadu Generation and Distribution Corporation.
Can the school infrastructure grant cover high schools and higher secondary schools?
Yes. The document says selection should not be restricted to Panchayat Union schools and may include high schools and higher secondary schools within local body jurisdiction.
How are rural local body grants distributed geographically?
The horizontal distribution uses population at 65 per cent, area at 15 per cent, and Scheduled Caste and Scheduled Tribe population at 20 per cent.
