G.O. (Ms) No.41, Sixth State Finance Commission Capital Grant Fund, 2023-24
The Rural Development and Panchayat Raj Department issued Government Order (Ms) Number 41 dated 6 March 2024, sanctioning and releasing Rs.1,147 crore under the Sixth State Finance Commission Capital Grant Fund for 2023-24. The funding supports rural infrastructure, road conversion, training institutions, schools and district-level capital works, and does not itself change land ownership or property records.
What the government order does
Government Order (Ms) Number 41 of the Rural Development and Panchayat Raj Department, dated 6 March 2024, sanctions and releases Rs.1,147 crore towards the Capital Grant Fund for 2023-24. The amount was provided in the Budget Estimate for 2023-24, and the Finance Department concurred with the sanction.
The Director of Rural Development and Panchayat Raj is authorised to draw and disburse the sanctioned amount. The Director must also provide the necessary certificate showing utilisation of the Capital Grant Fund.
Allocation of the grant
Government Order (Ms) Number 41 allocates the Rs.1,147 crore as follows:
- Rs.660 crore for improving rural infrastructure, with priority for weaker local bodies.
- Rs.132 crore for converting Panchayat roads into other district roads and improving important streets.
- Rs.1 crore for infrastructure development at Regional Training Institutions.
- Rs.154 crore for improving infrastructure in schools located in rural local bodies.
- Rs.200 crore for the District Level Capital Grant for rural local bodies.
The expenditure is assigned to separate government account heads for rural infrastructure, road conversion, Regional Training Institutions, schools and district-level capital grants.
Funding framework
Government Order (Ms) Number 41 records the existing Sixth State Finance Commission framework for the award period from 2022-23 to 2026-27. Under that framework, the vertical sharing ratio between rural and urban local bodies is 51:49.
The rural local body devolution is apportioned among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:39:6. Horizontal distribution among rural local bodies uses population at 65 per cent, area at 15 per cent, and Scheduled Caste and Scheduled Tribe population at 20 per cent.
Relevance to property owners and buyers
Government Order (Ms) Number 41 is a public finance and rural development sanction. It may support roads, streets, schools and other infrastructure in rural local body areas. It does not contain provisions changing land classification, ownership, title, boundaries, planning permission or property records.
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Common questions
Does Government Order (Ms) Number 41 change my land ownership or patta?
No such change is stated. The document sanctions and releases capital grant funding for rural infrastructure and related works, and contains no provision changing ownership, title or property records.
How much money was sanctioned for rural infrastructure?
Rs.660 crore was allocated for improving rural infrastructure, with priority for weaker local bodies.
Does the grant include funding for Panchayat roads?
Yes. Rs.132 crore was allocated for converting Panchayat roads into other district roads and improving important streets.
Who is responsible for releasing and accounting for the money?
The Director of Rural Development and Panchayat Raj is authorised to draw and disburse the amount and must furnish the necessary utilisation certificate.
