G.O. (Ms) No.121, Sixth State Finance Commission Grant, 2023
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.121 on 4 October 2023, sanctioning Rs.843.40 crore under the Operations, Maintenance and Deficit Grant Fund for 2023-24 and releasing a first instalment of Rs.421.70 crore. The funding supports rural local bodies and specified services, including water and electricity charges, school maintenance, library cess, training, welfare activities and infrastructure in tribal hamlets.
What the government order does
G.O. (Ms) No.121, issued by the Rural Development and Panchayat Raj Department on 4 October 2023, sanctions Rs.843.40 crore under the Operations, Maintenance and Deficit Grant Fund for 2023-24. It releases Rs.421.70 crore as the first instalment, based on the Sixth State Finance Commission recommendations.
The 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 uses population at 65 per cent, area at 15 per cent and Scheduled Caste and Scheduled Tribe population at 20 per cent.
Main uses of the fund
G.O. (Ms) No.121 provides for funding in the following areas:
- Rs.110 crore for water charges owed by Village Panchayats to the Tamil Nadu Water Supply and Drainage Board.
- Rs.220 crore for electricity charges of local bodies that cannot meet them from existing resources, to be settled with Tamil Nadu Generation and Distribution Corporation Limited.
- Rs.30.80 crore to the Directorate of Libraries as advance library cess.
- Rs.60 lakh for capacity building of rural local body officials and public representatives.
- Funding for Village Panchayats that have remained in deficit for two consecutive financial years, subject to a maximum grant of Rs.10 lakh per local body per year.
- Rs.69 crore for peri urban panchayats and Rs.30 crore for hill area panchayats. Separate guidelines are to be issued.
- Rs.5 crore for welfare activities through the Tamil Nadu Sanitary Workers Welfare Board.
- Rs.60 crore for minor works and maintenance of school infrastructure.
- Rs.10 crore for basic infrastructure in eligible tribal hamlets as part of implementing the Forest Rights Act.
Who is affected
G.O. (Ms) No.121 mainly affects Village Panchayats, other rural local bodies, government agencies receiving the allocated funds, rural local body officials and elected representatives. Deficit Village Panchayats may receive priority where they have long-standing water dues, low population-based grants, limited own revenue or difficulty meeting local contributions for schemes.
The document does not change private land ownership, title, registration or land use. Its relevance to residents and property owners is indirect, through local services and public infrastructure funded within rural local body areas.
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.121 change my land title or property rights?
No change to private land title, ownership, registration or land use is stated. The document deals with grants for rural local bodies and public services.
Can a Village Panchayat use the grant to clear water and electricity dues?
Yes. The funding includes amounts for settling eligible Village Panchayat water charges with the Tamil Nadu Water Supply and Drainage Board and electricity charges with Tamil Nadu Generation and Distribution Corporation Limited.
Which deficit Village Panchayats may receive priority?
Priority may be given to Village Panchayats with accumulated water dues, inadequate resources, low population grants, limited own revenue or difficulty meeting local contribution requirements. The Director of Rural Development and Panchayat Raj decides identification and distribution.
Can the school infrastructure fund cover high schools and higher secondary schools?
Yes. The source states that selection should not be restricted to Panchayat Union schools and may include high schools and higher secondary schools within local body jurisdictions.
