G.O. (Ms) No.14, Release under Operations, Maintenance and Deficit Grant Fund, 2023-24
The Rural Development and Panchayat Raj (PR-1(2)) Department issued Government Order (Ms) Number 14 dated 24 January 2024, releasing Rs.421.70 crore as the second instalment under the Operations, Maintenance and Deficit Grant Fund for 2023-24. The money supports rural local bodies through payments for water and electricity charges, deficit Village Panchayats, infrastructure, training and other specified purposes.
What the document does
Government Order (Ms) Number 14 dated 24 January 2024 authorises the Director of Rural Development and Panchayat Raj to draw and disburse Rs.421.70 crore. This is the second instalment of the Operations, Maintenance and Deficit Grant Fund for 2023-24, based on the Sixth State Finance Commission recommendations.
The Government had sanctioned Rs.843.40 crore for the year and had already released a first instalment of Rs.421.70 crore.
How the grant framework works
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 devolution 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 factors:
- Population, 65 per cent.
- Area, 15 per cent.
- Scheduled Caste and Scheduled Tribe population, 20 per cent.
Main allocations
The second instalment includes:
- Rs.55 crore to the Tamil Nadu Water Supply and Drainage Board for Village Panchayat water charges.
- Rs.110 crore to the Tamil Nadu Generation and Distribution Corporation for Village Panchayat electricity consumption charges.
- Rs.154 crore for deficit Village Panchayats identified by the Director of Rural Development and Panchayat Raj.
- Rs.30 crore for school infrastructure works.
- Rs.34.50 crore for peri-urban Panchayats and Rs.15 crore for hill area Panchayats.
- Rs.15.40 crore as advance library cess to the Directorate of Libraries.
- Rs.5 crore as a reward for Forest Rights Act implementation.
- Rs.2.50 crore to the Tamil Nadu Sanitary Workers Welfare Board for welfare activities.
- Rs.30 lakh for capacity building of rural local body officials and elected representatives.
Who is affected
Government Order (Ms) Number 14 primarily affects Village Panchayats, other rural local bodies, their officials, elected representatives and the public bodies receiving direct payments. Property buyers and owners may benefit indirectly from local water services, electricity payments and school infrastructure, but the document contains no provision changing private land ownership, patta, land classification, registration or development rights.
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Common questions
Does Government Order (Ms) Number 14 change my patta or land ownership?
No provision in the document changes patta, private land ownership, land classification or registration. It deals with the release and use of grants for rural local bodies.
Will Village Panchayat water and electricity dues be paid from this grant?
The document provides Rs.55 crore to the Tamil Nadu Water Supply and Drainage Board for Village Panchayat water charges and Rs.110 crore to the Tamil Nadu Generation and Distribution Corporation for electricity consumption charges.
How are Sixth State Finance Commission grants distributed among rural local bodies?
The rural allocation is apportioned among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:39:6. Distribution also uses population at 65 per cent, area at 15 per cent and Scheduled Caste and Scheduled Tribe population at 20 per cent.
Does the funding include rural school infrastructure?
Yes. The document releases Rs.30 crore to the relevant section of the Directorate of Rural Development and Panchayat Raj for school infrastructure works.
