G.O. (Ms) No.30, Release of Rs.837.6203 crore to Rural Local Bodies, 2024
The Rural Development and Panchayat Raj Department issued Government Order (Ms) Number 30, dated 22 February 2024, sanctioning Rs.837,62,03,000 as the second instalment of the Fifteenth Central Finance Commission Tied Grant for Tamil Nadu rural local bodies, together with the withheld part of the first instalment for six Village Panchayats. The grant supports specified sanitation, waste management, drinking water, rainwater harvesting and water recycling services, and does not set out changes to private land ownership or property title.
What the government order does
Government Order (Ms) Number 30, dated 22 February 2024, from the Rural Development and Panchayat Raj Department sanctions Rs.837,62,03,000 for rural local bodies in Tamil Nadu. The amount consists of:
- Rs.837,30,00,000 as the second instalment of the Tied Grant.
- Rs.32,03,000 as the withheld portion of the first instalment for six Village Panchayats.
The release covers 12,525 Village Panchayats, 388 Block Panchayats and 36 District Panchayats. The earlier first instalment had covered 12,519 Village Panchayats because funds for six Village Panchayats were withheld for non-compliance with a Government of India condition.
Permitted uses of the grant
Government Order (Ms) Number 30 restricts the Tied Grant to these basic services:
- Sanitation and maintenance of open defecation free status.
- Management and treatment of household waste.
- Management of human excreta and faecal sludge.
- Drinking water supply.
- Rainwater harvesting.
- Water recycling.
Rural local bodies should, as far as possible, earmark half of the tied funds for sanitation services and half for water-related services. A local body that has fully met the needs of one category may use the funds for the other category.
Distribution and transfer conditions
Government Order (Ms) Number 30 records a vertical sharing ratio of 5:15:80 among 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 the grant to the relevant rural local bodies within ten working days of receiving it from the Union Government, without deductions. A delay beyond ten working days requires the State Government to 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) Number 30 is a public finance sanction for rural infrastructure and basic services. It does not describe land acquisition, change land classification, alter ownership records or create property charges. Property owners and buyers may be affected indirectly where their Village Panchayat, Block Panchayat or District Panchayat uses the grant for local sanitation or water facilities.
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Common questions
Does Government Order (Ms) Number 30 change my patta or land ownership?
No such change is set out. The document sanctions tied grants to rural local bodies for specified sanitation and water services.
What services can my Village Panchayat fund with this grant?
The funds may be used for sanitation, maintenance of open defecation free status, household waste treatment, human excreta and faecal sludge management, drinking water, rainwater harvesting and water recycling.
Which rural local bodies receive the sanctioned amount?
The sanctioned release covers 12,525 Village Panchayats, 388 Block Panchayats and 36 District Panchayats in Tamil Nadu.
How quickly must the State transfer the money to rural local bodies?
The State Finance Department must transfer it within ten working days of receipt from the Union Government and without deduction. A longer delay requires payment of interest at the stated basis linked to the previous year's market borrowings or State Development Loans.
