G.O. (Ms) No.132, First Instalment of Tied Grant for 2023-24
The Rural Development and Panchayat Raj Department issued Government Order (Ms) No.132 on 8 November 2023, sanctioning Rs.836,97,91,000 as the first instalment of the Fifteenth Central Finance Commission Tied Grant for 2023-24 to eligible rural local bodies in Tamil Nadu. The money is allocated to 12,519 Village Panchayats, 388 Block Panchayats and 36 District Panchayats for specified sanitation and water services.
What the government order does
The Rural Development and Panchayat Raj Department, through Government Order (Ms) No.132 dated 8 November 2023, sanctions Rs.836,97,91,000 as the first instalment of the Fifteenth Central Finance Commission Tied Grant for 2023-24. The grant is for rural local bodies and must be used for specified basic services.
The sanction covers:
- Rs.669.5191 crore for 12,519 eligible Village Panchayats out of 12,525 Village Panchayats, distributed on a proportionate basis.
- Rs.125.5950 crore for all 388 Block Panchayats.
- Rs.41.8650 crore for all 36 District Panchayats.
Permitted uses
The Fifteenth Central Finance Commission Tied Grant may be used for two categories of basic services:
- Sanitation and maintenance of open defecation free status, including management and treatment of household waste, human excreta and faecal sludge.
- Drinking water supply, rainwater harvesting and water recycling.
Rural local bodies should, as far as possible, earmark half of the tied grant for each category. If a local body has fully met the needs of one category, it may use the funds for the other category.
The grant is governed by the Fifteenth Central Finance Commission recommendations and the operational guidelines issued by the Department of Expenditure, Ministry of Finance, Government of India.
Distribution and transfer requirements
The approved vertical sharing ratio among the three rural local body tiers is 5:15:80 for District Panchayats, Block Panchayats and Village Panchayats respectively. Distribution within each tier follows the multiplier factor recommended by the Sixth State Finance Commission.
The State Finance Department must transfer grants received from the Union Government to the relevant rural local bodies within ten working days and without deduction. If the transfer is delayed beyond ten working days, the State Government must release the instalment with interest based on the effective average interest rate on market borrowings or State Development Loans for the previous year.
Relevance to property owners and buyers
Government Order (Ms) No.132 dated 8 November 2023 concerns funding for rural sanitation and water services. It contains no provision changing land ownership, property boundaries, land classification or individual title records, but property owners in covered panchayat areas may benefit from local water, waste management and sanitation works funded through the grant.
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Common questions
Does Government Order (Ms) No.132 change my patta or land ownership?
No change to patta, land ownership, boundaries or title records is set out in the document. It sanctions tied funding for specified rural sanitation and water services.
Which rural local bodies receive the grant?
The grant covers 12,519 eligible Village Panchayats, all 388 Block Panchayats and all 36 District Panchayats.
Can a panchayat spend this money on any local need?
No. The tied grant is for sanitation and maintenance of open defecation free status, or for drinking water supply, rainwater harvesting and water recycling.
How quickly must the grant be transferred to rural local bodies?
The State Finance Department must transfer it within ten working days of receipt from the Union Government, without deduction. A delay beyond that period requires release with interest at the specified effective rate based on the previous year.
