G.O. (Ms) No.30, 5th State Finance Commission Grants for 2021-22
The Rural Development and Panchayat Raj (PR-1(2)) Department issued G.O. (Ms) No.30, dated 17 March 2022, sanctioning and releasing Rs.1356,62,39,572 in Fifth State Finance Commission grants for January 2022 to March 2022. The funding covers minimum grants for Village Panchayats and Panchayat Unions, and population grants for all three tiers of Panchayats.
What the government order does
G.O. (Ms) No.30 of the Rural Development and Panchayat Raj (PR-1(2)) Department, dated 17 March 2022, releases Fifth State Finance Commission grants for the final three months of 2021-22. The sanctioned amount is Rs.1356,62,39,572 for Village Panchayats, Panchayat Unions and District Panchayats.
The document concerns government funding for rural local bodies. It does not contain decisions about ownership, land classification, land use or any individual property.
How rural local body funding is divided
The Fifth State Finance Commission arrangements recorded in G.O. (Ms) No.30 provide for 10% of the State's net Own Tax Revenue to be devolved to local bodies. Rural and urban local bodies receive shares in the ratio of 56:44.
For rural local bodies, the document records the following allocation:
- Capital Grant Fund, 20%.
- Pooled Fund for Deficit Rural Local Bodies, 10%.
- Devolution Grant, 70%.
The Devolution Grant for rural local bodies is divided among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:37:8.
Distribution formula
G.O. (Ms) No.30 states that horizontal distribution among rural local bodies is based on:
- Total population from the 2011 Census, 60%.
- Scheduled Caste and Scheduled Tribe population, 15%.
- Area, 15%.
- Per capita consumption expenditure distance, 10%.
Minimum and population grants
The Rural Development and Panchayat Raj (PR-1(2)) Department records these key provisions:
- Each Village Panchayat receives a minimum annual lump sum grant of Rs.7 lakh, deducted first from the Village Panchayat share. The balance is distributed using the horizontal formula.
- For January 2022 to March 2022, the Village Panchayat minimum grant release totals Rs.200,40,00,000. The population grant release totals Rs.522,99,95,500.
- Each Panchayat Union receives a minimum annual lump sum grant of Rs.40 lakh, deducted first from the Panchayat Union share.
- For January 2022 to March 2022, the Panchayat Union minimum grant release totals Rs.50,44,00,000.
- The District Panchayat allocation is distributed through the stated sharing mechanism.
Who is affected
G.O. (Ms) No.30 directly concerns Village Panchayats, Panchayat Unions and District Panchayats receiving State Finance Commission funding. Property buyers and owners are not assigned any payment, application or compliance requirement in the document.
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.30 change my land ownership or patta?
No change to land ownership or patta is stated. G.O. (Ms) No.30 deals with the release and distribution of grants to rural local bodies.
Which local bodies receive money under G.O. (Ms) No.30?
Village Panchayats, Panchayat Unions and District Panchayats receive funding. Minimum grants apply to Village Panchayats and Panchayat Unions, while population grants cover all three tiers.
How is the rural Devolution Grant divided among the three Panchayat tiers?
The Devolution Grant is divided among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:37:8.
What period does the grant release cover?
The release covered by G.O. (Ms) No.30 is for January 2022 to March 2022.
