G.O. (Ms.) No.203, Member of Legislative Assembly Constituency Development Scheme, 2025-26

What the document does

Government Order (Ms.) No.203 of the Rural Development and Panchayat Raj (SGS.1) Department, dated 15 September 2025, provides funding and Goods and Services Tax arrangements for the Member of Legislative Assembly Constituency Development Scheme during 2025-26. The earlier administrative sanction provided Rs.702 crore, based on Rs.3 crore for each constituency, together with detailed implementation guidelines.

The Government considered a request to increase the release to Rs.828.36 crore by adding Rs.54 lakh for Goods and Services Tax to each of the 234 constituencies. Instead, it decided to release Rs.702 crore from the budget allocation and reimburse the 18 percent Goods and Services Tax cost separately after every financial year.

Key provisions

Government Order (Ms.) No.203 provides that:

• Rs.702 crore is released for implementing the Member of Legislative Assembly Constituency Development Scheme in 2025-26.
• Rs.547.56 crore, representing 78 percent, is assigned under other expenditure for scheme works.
• Rs.147.42 crore, representing 21 percent, is assigned under the Special Component Plan for Scheduled Castes.
• Rs.7.02 crore, representing 1 percent, is assigned under the Tribal Area Sub Plan.
• The Commissioner of Rural Development and Panchayat Raj must consolidate the total 18 percent Goods and Services Tax cost of sanctioned works and claim reimbursement from the Government after each financial year from 2025-26 onwards.
• The sanctioned amount is to be credited to the specified public deposit account rather than paid in cash.
• The Commissioner of Rural Development and Panchayat Raj may draw the sanctioned amount and distribute it to District Collectors, except Chennai, and to the Commissioner of the Greater Chennai Corporation.

How payments are handled

The Member of Legislative Assembly Constituency Development Scheme fund is maintained through a Single Nodal Account at Indian Overseas Bank, Saidapet branch, Chennai. Districts, implementing agencies and vendors are connected through that account.

For completed works, the 18 percent Goods and Services Tax amount is deducted through the Single Nodal Account. A voucher is generated when the final bill is paid to the vendor, and the tax is paid directly to the Goods and Services Tax account.

Relevance to property owners and buyers

Government Order (Ms.) No.203 concerns public scheme funding, accounting, tax reimbursement and payment administration. It does not set out requirements for land ownership, property registration, land classification or private property transactions.