G.O. (Ms) No.40, Release of Pooled Assigned Revenue for 2020-21 as Second Instalment

What the document does

Government Order (Ms.) No. 40 dated 26 February 2021, issued by the Rural Development and Panchayat Raj Department, releases Rs.206,14,43,990 to the Scheme Component Fund under Pooled Assigned Revenue for 2020-21. The money is intended for priority works and specific development schemes in rural areas.

The sanctioned amount represents the second instalment connected with the two-thirds share of Pooled Assigned Revenue earmarked for the Fund for Priority Schemes in Rural Areas.

Background to the pooled revenue

The Rural Development and Panchayat Raj Department had previously provided for pooling revenue due to Rural Local Bodies from Local Cess, Local Cess Surcharge, surcharge on stamp duty and entertainment tax. Social forestry receipts and income from mines and minerals were excluded. The document notes that Local Cess and Local Cess Surcharge had been discontinued since 2009-10.

The earlier allocation arrangement divided Pooled Assigned Revenue as follows:

• One-third was allocated to Village Panchayats and Panchayat Unions in a 67:33 ratio based on the 2011 Census population.
• Two-thirds was earmarked for the Fund for Priority Schemes in Rural Areas.
• One-third of the total pooled amount could be released to Village Panchayats facing difficulty in paying current consumption charges.

Financial provisions

Government Order (Ms.) No. 40 dated 26 February 2021 provides that:

• Rs.206,14,43,990 is sanctioned for basic infrastructure facilities and priority works in rural areas.
• The amount is transferred from surcharge on stamp duty revenue to the Fund for Priority Schemes in Rural Areas.
• The Principal Accountant General (Accounts and Entitlements), Chennai, must make the required book adjustments and issue a certificate.
• The Commissioner of Rural Development and Panchayat Raj may draw and disburse the amount for specific rural development schemes.
• Disbursement must follow the guidelines issued in Government Order (Ms.) No. 203, Rural Development and Panchayat Raj Department, dated 1 December 2020.

Who is affected

Government Order (Ms.) No. 40 dated 26 February 2021 primarily affects the Commissioner of Rural Development and Panchayat Raj, rural local bodies, district administrations and accounting authorities handling the fund. For property buyers and owners, its land-related connection is limited to the pooling of surcharge on stamp duty revenue. The document governs the transfer and use of government funds and does not state any change to an individual property record, ownership right or registration procedure.