G.O. (Ms) No.95, Sixth State Finance Commission Grants for 2023-24, 2024
The Rural Development and Panchayat Raj (PR-1(2)) Department issued G.O. (Ms) No.95 on 29 May 2024, sanctioning and releasing Rs.5061,22,37,857 in Sixth State Finance Commission grants for rural local bodies. The funding covers minimum grants for 12,525 Village Panchayats and 388 Panchayat Unions, and population grants for all three Panchayat tiers, for ten months from April 2024 to January 2025.
What the government approved
The Rural Development and Panchayat Raj (PR-1(2)) Department, through G.O. (Ms) No.95 dated 29 May 2024, sanctions Rs.5061,22,37,857 for rural local bodies. The amount is to be released over ten months from April 2024 to January 2025, with a monthly release of Rs.506,12,23,785.
The grant forms part of the Sixth State Finance Commission arrangements. Rural and urban local bodies receive State Finance Commission devolution in a ratio of 51:49. The rural local body share is divided among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:39:6.
Who receives the grants
G.O. (Ms) No.95 dated 29 May 2024 covers all three rural Panchayat tiers:
- 12,525 Village Panchayats receive minimum grants and population grants. The amount released for April 2024 to January 2025 is Rs.2836,98,70,000.
- 388 Panchayat Unions receive minimum grants and population grants. The amount released for the same period is Rs.1928,41,09,286.
- District Panchayats receive population grants. The amount released for the same period is Rs.295,82,58,571.
The remaining four instalments for February and March 2025 are to be released later, based on the Budget Estimate.
Key conditions for Village Panchayats
G.O. (Ms) No.95 dated 29 May 2024 provides the following controls for Village Panchayat minimum grants:
- The annual minimum lump sum grant is Rs.7 lakh for each Village Panchayat.
- Funds for electricity and water charges are initially divided in a 70:30 ratio.
- Any balance in one account after its dues are cleared may be transferred to the other utility account.
- Funds may move to the Village Panchayat General Fund only when electricity and water dues are cleared.
- A reserve for another two months of electricity and water charges must be retained before the remaining amount is transferred to the General Fund.
Each Panchayat Union has an annual minimum lump sum grant of Rs.40 lakh. Remaining Panchayat Union funds and District Panchayat grants are distributed using the Sixth State Finance Commission weightage formula.
Relevance to property owners and buyers
G.O. (Ms) No.95 dated 29 May 2024 concerns government funding for rural local bodies. It does not set out changes to land ownership, patta, registration, land classification or planning permission.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O. (Ms) No.95 change my patta or land ownership?
No land ownership or patta change is set out in the document. It deals with the sanction and release of State Finance Commission grants to rural Panchayats.
Which local bodies receive money under the government order?
The funding covers 12,525 Village Panchayats, 388 Panchayat Unions and District Panchayats. Village Panchayats and Panchayat Unions receive minimum and population grants, while District Panchayats receive population grants.
Can a Village Panchayat use its minimum grant for general expenses?
Only after electricity and water dues are cleared and a reserve for another two months of those charges is retained may the remaining amount be transferred to the Village Panchayat General Fund.
What period does the sanctioned release cover?
The sanctioned release covers ten months from April 2024 to January 2025. The balance instalments for February and March 2025 are to be released later, based on the Budget Estimate.
