Rural Development and Panchayat Raj Department, Grants, Award under 15th Central Finance Commission, Basic Grant (Untied), Release of second installment of Rs.533.20 Crore to Rural Local Bodies for the year 2021-22, Sanction, Orders Issued
The Rural Development and Panchayat Raj Department, through G.O. (Ms) No.2 dated 5 January 2022, sanctions Rs.533.20 crore as the second instalment of the Fifteenth Central Finance Commission Basic Grant (Untied) for Tamil Nadu rural local bodies in 2021-22. The money is allocated among Village Panchayats, Panchayat Unions and District Panchayats for local needs, excluding salaries and other establishment costs.
What the government order does
G.O. (Ms) No.2 dated 5 January 2022 of the Rural Development and Panchayat Raj Department sanctions Rs.533,20,00,000 as the second instalment of the Fifteenth Central Finance Commission Basic Grant (Untied) for rural local bodies in Tamil Nadu for 2021-22.
The Ministry of Finance, Department of Expenditure, Government of India released this amount to Tamil Nadu. An equal amount of Rs.533.20 crore had already been released as the first instalment for 2021-22.
Who receives the funding
The Rural Development and Panchayat Raj Department authorises the Director of Rural Development and Panchayat Raj to draw and distribute the sanctioned amount to:
- 12,525 Village Panchayats.
- 388 Panchayat Unions.
- 36 District Panchayats.
The sanctioned distribution is:
- Rs.426,56,00,000, or 80 per cent, for Village Panchayats.
- Rs.79,98,00,000, or 15 per cent, for Panchayat Unions or Block Panchayats.
- Rs.26,66,00,000, or 5 per cent, for District Panchayats.
Permitted use of the money
The Fifteenth Central Finance Commission Basic Grant is untied funding. Rural local bodies may use it for location-specific felt needs, subject to the following conditions:
- It cannot be used for salaries or other establishment expenditure.
- Expenditure on auditing accounts by external agencies approved by the State Government may be paid from the grant.
- The utilisation guidelines issued by the Rural Development and Panchayat Raj Department in G.O. (Ms) No.18 dated 3 February 2021 must be followed.
The source also describes the wider Fifteenth Finance Commission grant structure as 40 per cent Basic Grant and 60 per cent Tied Grant. The tied portions are earmarked for water-related work and for sanitation, maintenance of open defecation free status, household waste treatment, human excreta treatment and faecal sludge management.
Relevance to property owners and buyers
G.O. (Ms) No.2 dated 5 January 2022 concerns government funding for rural local bodies. It does not contain provisions changing land ownership, land classification, patta records, property registration or planning permission. Its practical relevance is that Village Panchayats and other rural local bodies receive untied funds for eligible local needs.
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 this government order change my patta or land ownership?
No provision in G.O. (Ms) No.2 dated 5 January 2022 changes patta records or land ownership. The document sanctions and distributes grant funding to rural local bodies.
How much money was released to Village Panchayats?
The sanctioned amount for Village Panchayats is Rs.426,56,00,000, representing 80 per cent of the Rs.533.20 crore second instalment.
Can a Panchayat use this grant to pay staff salaries?
No. The Basic Grant may be used for location-specific felt needs, but not for salaries or other establishment expenditure.
Which rural local bodies receive the second instalment?
The funding is to be distributed to 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats in Tamil Nadu.
