G.O. (Ms) No.39, Fifth State Finance Commission Grants for the year 2020-21
The Rural Development and Panchayat Raj (PR-1) Department issued G.O. (Ms) No.39 on 26 February 2021, sanctioning Rs.1236,98,00,000 in Fifth State Finance Commission grants for Village Panchayats, Panchayat Unions and District Panchayats for February and March 2021. The grant supports rural local bodies through minimum and population grants and does not change individual land ownership, title or property transaction requirements.
What the government order does
G.O. (Ms) No.39 of the Rural Development and Panchayat Raj (PR-1) Department sanctions Rs.1236,98,00,000 for the three tiers of Panchayat Raj institutions. The money covers February and March 2021 and forms part of the Fifth State Finance Commission grant for 2020-21.
The revised budget provision for rural local bodies for 2020-21 was Rs.3858,06,60,000. The Government had previously released Rs.1629,08,00,790 for April to December 2020.
Who receives the funding
G.O. (Ms) No.39 provides grants to:
- 12,525 Village Panchayats.
- 388 Panchayat Unions.
- 36 District Panchayats.
The Fifth State Finance Commission framework apportions the rural local body devolution grant among Village Panchayats, Panchayat Unions and District Panchayats in the ratio of 55:37:8.
Horizontal distribution uses total population from the 2011 Census at 60 per cent, Scheduled Caste and Scheduled Tribe population at 15 per cent, area at 15 per cent, and per capita consumption expenditure distance at 10 per cent.
Key amounts sanctioned
G.O. (Ms) No.39 allocates the sanctioned amount as follows:
- Village Panchayats receive Rs.125,25,00,000 as minimum grant and Rs.379,36,40,000 as population grant.
- Panchayat Unions receive Rs.54,32,00,000 as minimum grant and Rs.547,38,80,000 as population grant.
- District Panchayats receive Rs.130,65,80,000 as population grant.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and distribute the funds. The Commissioner may also make deductions for committed expenditure, including pension contribution, and other deductions specifically authorised by government orders.
Relevance to property owners and buyers
G.O. (Ms) No.39 concerns government funding for rural local bodies. It does not prescribe land classification, ownership, registration, planning permission, building approval or property tax requirements. A buyer or owner is not identified as a direct grant recipient, although the relevant Village Panchayat, Panchayat Union or District Panchayat may receive funding under the allocation.
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.39 change my land title or ownership rights?
No change to land title or ownership rights is set out in the document. It sanctions Fifth State Finance Commission grants to rural local bodies.
Will an individual property owner receive money under this grant?
The identified recipients are Village Panchayats, Panchayat Unions and District Panchayats. The document does not provide for direct payments to individual property owners.
How much funding was sanctioned for February and March 2021?
The Rural Development and Panchayat Raj (PR-1) Department sanctioned Rs.1236,98,00,000 for the three tiers of Panchayat Raj institutions.
Who is responsible for distributing the sanctioned funds?
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and disburse the funds to the three tiers of Panchayat Raj institutions.
