G.O. (Ms) No.53, Allocation of Capital Grant Fund for 2020-21

What the government order does

Government Order (Ms) No. 53 of the Rural Development and Panchayat Raj Department sanctions Rs.1064,68,74,000 under the Capital Grant Fund for rural local bodies. The amount is the first and final instalment for 2020-21 under the Final Modified Appropriation for that year.

The Commissioner of Rural Development and Panchayat Raj is authorised to draw and disburse the sanctioned amount. Distribution to districts for the roads scheme is to be based on progress.

How the money is allocated

The Capital Grant Fund is part of the State Finance Commission Grant. The sanctioned amount is divided into a 20% State component of Rs.212,93,74,800 and an 80% District component of Rs.851,74,99,200.

Permitted uses are:

• Rs.1000 crore for the Tamil Nadu Rural Roads Improvement Scheme for 2020-21.
• Rs.61.80 crore for payment to the Tamil Nadu Water Supply and Drainage Board to revamp old Combined Water Supply Schemes.
• Rs.2,88,74,000 to settle bills relating to committed liabilities from 2019-20.

The Tamil Nadu Rural Roads Improvement Scheme was approved to improve rural roads, with funding from State Finance Commission Grants.

Capital Grant Fund framework

The Rural Development and Panchayat Raj Department records that the Capital Grant Fund replaced the Infrastructure Gap Filling Fund. Twenty per cent of the aggregate devolution intended for rural local bodies is paid into the Capital Grant Fund.

Within that fund:

• 20% is reserved for projects considered important at the State level, selected and approved by the specified committee of government, rural development, finance and planning representatives.
• The remaining 80% is distributed district wise using the formula for horizontal distribution among District Panchayats.
• District Planning Committees decide project allocations under detailed departmental guidelines.

Relevance to property owners and buyers

Government Order (Ms) No. 53 concerns public funding for rural roads, water supply infrastructure and rural local bodies. It does not set out any transfer of private land, change of land use, ownership rule or property fee. A buyer or owner may be affected indirectly if funded road or water projects are carried out near the property, but the document itself does not identify individual properties or project locations.

Cancellation of the earlier sanction

Government Order (Ms) No. 53 cancels Government Order (Ms) No. 35 of the Rural Development and Panchayat Raj Department, dated 26 February 2021. The Commissioner is directed to ensure that no money sanctioned under the cancelled order is withdrawn.