G.O. (Ms) No.35, Release of Second Instalment of Tied Grant for 2021-22
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.35 on 23 March 2022, sanctioning Rs.799.80 crore as the second instalment of the Tied Grant for 2021-22 under the Fifteenth Central Finance Commission. The grant is distributed among District Panchayats, Panchayat Unions and Village Panchayats for sanitation, maintenance of open defecation free status, drinking water, rainwater harvesting and recycling.
What the document does
G.O. (Ms) No.35 of the Rural Development and Panchayat Raj Department, dated 23 March 2022, sanctions Rs.799.80 crore as the second instalment of the Tied Grant for Rural Local Bodies for 2021-22. The Government of India had released this amount under the Fifteenth Central Finance Commission.
The Director of Rural Development and Panchayat Raj is authorised to draw and distribute the money immediately to the eligible rural local bodies.
Who receives the grant
The Rs.799.80 crore second instalment is allocated across Tamil Nadu's three levels of rural local government:
- Rs.39.99 crore for 36 District Panchayats.
- Rs.119.97 crore for 388 Panchayat Unions or Block Panchayats.
- Rs.639.84 crore for 12,525 Village Panchayats.
The approved vertical sharing ratio is 5:15:80 for District Panchayats, Panchayat Unions and Village Panchayats respectively.
Within each level, horizontal distribution is based on:
- Population according to the 2011 Census, 60 per cent.
- Area, 15 per cent.
- Scheduled Caste and Scheduled Tribe population, 15 per cent.
- Per capita consumption expenditure distance, 10 per cent.
Permitted uses
The Fifteenth Central Finance Commission Tied Grant must be used for these basic services:
- Sanitation and maintenance of open defecation free status.
- Drinking water supply, rainwater harvesting and recycling.
Rural local bodies should, as far as possible, earmark half of their tied grant for each service category. If a local body has fully met the needs of one category, it may use the money for the other category.
The document also explains that Basic Grants are untied and may be used for local needs, except salaries or other established expenditure. The amount sanctioned by G.O. (Ms) No.35 is specifically the Tied Grant component.
Relevance to property owners and buyers
G.O. (Ms) No.35 concerns funding for rural sanitation and water services. It does not state any change to land ownership, property registration, land classification or individual property rights. Its practical relevance to rural property owners and buyers is through local services that may be provided by Village Panchayats and other rural local bodies.
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Common questions
Does G.O. (Ms) No.35 change my land title or property records?
No change to land title or property records is stated. The document sanctions and distributes a rural local body grant for specified sanitation and water services.
What can a Village Panchayat use this Tied Grant for?
It can be used for sanitation, maintenance of open defecation free status, drinking water supply, rainwater harvesting and recycling. As far as possible, half should be earmarked for each of the two main service categories.
How much of the second instalment goes to Village Panchayats?
The document allocates Rs.639.84 crore to 12,525 Village Panchayats.
Can the sanctioned Tied Grant be used for salaries?
The document limits the Tied Grant to the specified sanitation and water services. It separately states that Basic Grants cannot be used for salary or other established expenditure.
