G.O. (Ms) No.13, Basic (Untied) Grants to Panchayats, 2024
The Rural Development and Panchayat Raj Department issued Government Order, G.O. (Ms) No.13, dated 19 January 2024, sanctioning and releasing Rs.558,41,39,000 in Fifteenth Finance Commission Basic (Untied) Grants to Tamil Nadu rural local bodies. The funding covers the withheld part of the first instalment for six Village Panchayats and the second instalment for 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats.
What the government approved
The Rural Development and Panchayat Raj Department, through Government Order, G.O. (Ms) No.13, dated 19 January 2024, sanctions and releases a total of Rs.558,41,39,000. The amount consists of:
- Rs.558,20,00,000 as the second instalment of the Basic (Untied) Grant.
- Rs.21,39,000 as the withheld portion of the first instalment for six Village Panchayats.
The Director of Rural Development and Panchayat Raj is authorised to draw and distribute the money to 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats.
Allocation among Panchayat tiers
Government Order, G.O. (Ms) No.13, dated 19 January 2024, assigns the sanctioned amount under separate accounts as follows:
- Village Panchayats, Rs.446,77,39,000.
- Block Panchayats or Panchayat Unions, Rs.83,73,00,000.
- District Panchayats, Rs.27,91,00,000.
The approved vertical sharing ratio among District Panchayats, Block Panchayats and Village Panchayats is 5:15:80. Distribution within each tier follows the multiplier factor recommended by the Sixth State Finance Commission. The document also states that distribution may be based on population and area in a 90:10 ratio where State Finance Commission recommendations are unavailable.
How the grant may be used
The Fifteenth Finance Commission Basic Grants covered by Government Order, G.O. (Ms) No.13, dated 19 January 2024, are untied grants. Key conditions include:
- Rural local bodies may use them for location specific needs under the twenty nine subjects in the Eleventh Schedule of the Constitution.
- The money cannot be used for salaries or other establishment expenditure.
- Costs for auditing accounts through external agencies approved by the State Government may be paid from the grant.
- The State Finance Department must transfer the grants to the relevant bodies within ten working days of receiving them from the Union Government, without deductions.
- A delay beyond ten working days requires the State Government to release the instalment with applicable interest.
- Utilisation must follow the guidelines issued by the Rural Development and Panchayat Raj Department in G.O. (Ms) No.18, dated 3 February 2021.
Relevance to property owners and buyers
Government Order, G.O. (Ms) No.13, dated 19 January 2024, is a rural local body funding decision. It does not change land ownership, property title, land classification, planning permission or registration requirements.
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.13 change my land title or classification?
No. The document sanctions grants to rural local bodies and contains no provision changing land ownership, title or land classification.
Which local bodies receive the grant?
The release covers 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats. It also includes a withheld portion of the first instalment for six Village Panchayats.
Can a Panchayat use this grant to pay staff salaries?
No. The Basic (Untied) Grant may be used for location specific needs, but not for salaries or other establishment expenditure. Approved external audit costs may be paid from it.
How much funding was sanctioned?
The Rural Development and Panchayat Raj Department sanctioned Rs.558,41,39,000, comprising the second instalment of Rs.558,20,00,000 and Rs.21,39,000 previously withheld for six Village Panchayats.
