G.O. (Ms) No.31, Fifth State Finance Commission Grant, Pooled Fund for Deficit Rural Local Bodies, 2021-22
The Tamil Nadu Rural Development and Panchayat Raj Department issued G.O. (Ms) No.31 dated 17 March 2022, sanctioning Rs.614,92,38,000 for the Pooled Fund for Deficit Rural Local Bodies for 2021-22 and authorising release of Rs.93,89,23,800 as the third instalment. The grant supports deficit Village Panchayats and Panchayat Unions, special local body needs, combined water supply schemes and other listed rural local body purposes.
Purpose
The Tamil Nadu Rural Development and Panchayat Raj Department issued G.O. (Ms) No.31 dated 17 March 2022 under the Fifth State Finance Commission grant arrangements. It records a total sanction of Rs.614,92,38,000 for the Pooled Fund for Deficit Rural Local Bodies for 2021-22 and authorises the third instalment of Rs.93,89,23,800.
The Director of Rural Development and Panchayat Raj, Chennai, is authorised to draw the amount through the PFMS account maintained at the Directorate and disburse it under the listed components.
Allocation framework
The Fifth State Finance Commission framework apportions the Rural Local Bodies Devolution Grant among Village Panchayats, Panchayat Unions and District Panchayats in the ratio 55:37:8. The overall funds are divided into:
- Capital Grant Fund, 20%.
- Pooled Fund for Deficit Rural Local Bodies, 10%.
- Devolution Grant to Rural Local Bodies, 70%.
Horizontal distribution 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%.
Uses of the pooled fund
The Pooled Fund for Deficit Rural Local Bodies is divided among the following purposes:
- 40% for deficit Panchayat Unions and Village Panchayats. The document identifies 127 Panchayat Unions and 3,921 Village Panchayats and permits funds to settle current consumption charges to TANGEDCO as a one-time settlement.
- 20% retained by the Director of Rural Development and Panchayat Raj for special problems that existing transfer mechanisms or schemes cannot address.
- 20% distributed through District Collectors based on horizontal District Panchayat shares for special local body problems. The document also records that Rs.38.69 crore was used for maintenance of PMGSY roads during 2021-22.
- 20% released to TWAD on a quarterly basis to meet deficits in combined water supply schemes, in addition to water charges collected from Rural Local Bodies.
Who is affected
G.O. (Ms) No.31 dated 17 March 2022 directly concerns Village Panchayats, Panchayat Unions, District Panchayats, District Collectors, the Director of Rural Development and Panchayat Raj, TWAD and other officials handling the grant. It does not contain provisions changing land ownership, patta, registration or land-use rights.
Important figure to note
The operative text authorises a third-instalment release of Rs.93,89,23,800. A preceding table separately shows third-instalment component figures totalling Rs.57,89,23,800, so readers handling accounts should note that both figures appear in the document.
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Common questions
Does G.O. (Ms) No.31 affect my patta or ownership of rural land?
No provision in the document changes patta, land ownership, registration or land use. It concerns grants for deficit Rural Local Bodies.
Which local bodies can receive support from the pooled fund?
The document provides support for deficit Village Panchayats and Panchayat Unions. It identifies 127 Panchayat Unions and 3,921 Village Panchayats for the 40% deficit local bodies component.
What can the grant money be used for?
The listed uses include settling current consumption charges to TANGEDCO, addressing special problems not covered by existing schemes, maintaining PMGSY roads and meeting deficits in combined water supply schemes.
Who is authorised to draw and distribute the third instalment?
The Director of Rural Development and Panchayat Raj, Chennai, is authorised to draw the amount through the PFMS account maintained at the Directorate and disburse the grant under the listed components.
