G.O. (Ms) No.35, Special Grant for Committed Liability for Ongoing Schemes of 2019-20, 2021
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.35, dated 26 February 2021, sanctioning Rs.363.17 crore as a special grant for committed liabilities from ongoing rural local body schemes of 2019-20. The grant replaces deferred amounts from the Capital Grant Fund and the Pooled Fund for Deficit Rural Local Bodies.
What the government order does
G.O. (Ms) No.35 of the Rural Development and Panchayat Raj Department, dated 26 February 2021, sanctions a special grant of Rs.363.17 crore to address committed liabilities arising from ongoing schemes of 2019-20. The sanction is made in place of deferred Capital Grant Fund and Pooled Fund amounts for deficit Rural Local Bodies.
The document records that reductions in the revised State Finance Commission allocation, together with works already undertaken, created a total committed liability of Rs.1052.32 crore for 2019-20.
State Finance Commission funding structure
The Rural Development and Panchayat Raj Department records that 10% of the State's Own Tax Revenue was to be devolved to Local Bodies from 2017-18 to 2021-22. Rural and Urban Local Bodies were to share the grant in the ratio of 56:44.
Funds for Rural Local Bodies were divided as follows:
- Capital Grant Fund, 20%.
- Pooled Fund for Deficit Rural Local Bodies, 10%.
- Devolution Grant to Rural Local Bodies, 70%.
The 70% devolution among rural tiers was divided in the ratio of 8:37:55 for District Panchayats, Panchayat Unions and Village Panchayats. Horizontal distribution was based on total population, Scheduled Caste and Scheduled Tribe population, area, and per capita consumption expenditure distance.
Liabilities and works covered
G.O. (Ms) No.35 identifies funding gaps connected with rural infrastructure and local body responsibilities, including:
- Village Panchayat and Panchayat Union roads of less than one kilometre.
- The Revamped Comprehensive School Infrastructure Development Scheme.
- The Tamil Nadu Rural Roads Improvement Scheme.
- Upgrading, strengthening and renewing Panchayat Union roads.
- Reverse osmosis plants in Village Panchayats.
- Kudimaramathu works for ponds and ooranies.
- Revamping old Combined Water Supply Schemes.
- Regular Panchayat Union expenses, including wages and pension contributions.
- Expenditure by Rural Local Bodies for prevention and control of coronavirus infection.
Who is affected
G.O. (Ms) No.35 primarily affects Rural Local Bodies, District Collectors, District Planning Committees and agencies implementing the listed public works. It concerns government grant allocation and committed scheme expenditure. It does not record a change to private land ownership, land classification, planning permission or property registration.
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Common questions
Does G.O. (Ms) No.35 change the ownership or classification of my land?
No land ownership or classification change is described. The document deals with a special grant for committed liabilities of rural local body schemes.
How much special grant was sanctioned?
The Rural Development and Panchayat Raj Department sanctioned Rs.363.17 crore.
What kinds of projects are connected with the funding gap?
The document lists rural roads, school infrastructure, reverse osmosis plants, Kudimaramathu works, old Combined Water Supply Schemes and other Rural Local Body responsibilities.
Why was a special grant required?
The document records reduced State Finance Commission allocations and liabilities from works already taken up. It states that the total committed liability for 2019-20 was Rs.1052.32 crore.
