G.O. (Ms) No.54, Fifth State Finance Commission Grant, Pooled Fund for Deficit Rural Local Bodies, 2021
The Rural Development and Panchayat Raj Department issued Government Order (Ms) No.54 dated 30 March 2021, sanctioning Rs.212,93,74,800 from the Pooled Fund for Deficit Rural Local Bodies for 2020-21. The money is divided equally between the Director of Rural Development and Panchayat Raj and District Collectors to settle specified bills and liabilities for rural works.
What the government order does
Government Order (Ms) No.54 dated 30 March 2021 sanctions Rs.212,93,74,800 under the Pooled Fund for Deficit Rural Local Bodies. The grant relates to 2020-21 and is intended to settle specified bills and committed liabilities, including liabilities for works taken up during 2019-20.
The Rural Development and Panchayat Raj Department authorises the Commissioner of Rural Development and Panchayat Raj to draw the sanctioned amount and distribute it between the relevant components.
How the sanctioned amount is divided
The Rs.212,93,74,800 sanction is split into two equal parts:
- Rs.106,46,87,400 is released to the Director of Rural Development and Panchayat Raj. It represents the portion of the pooled fund vested with the Directorate of Rural Development and Panchayat Raj and may be used to settle RCSIDS 2020-21 bills and committed liabilities for works taken up during 2019-20.
- Rs.106,46,87,400 is released under the portion vested with District Collectors. It may be used to settle committed liabilities for works taken up during 2019-20.
The grant is booked under the specified government account for grants for creation of capital assets for rural local bodies.
Background to the pooled fund
The Fifth State Finance Commission arrangements created a Pooled Fund for Deficit Rural Local Bodies using 10% of the overall devolution intended for rural local bodies. The source describes the allocation structure as follows:
- 40% for deficit rural local bodies.
- 20% retained by the Directorate of Rural Development and Panchayat Raj.
- 20% distributed among District Collectors based on the horizontal District Panchayat wise share.
- 20% provided to the Tamil Nadu Water Supply and Drainage Board to meet deficits on Combined Water Supply Schemes.
The financial allocation for the pooled fund in 2020-21 was Rs.532,34,37,000.
Who is affected
Government Order (Ms) No.54 dated 30 March 2021 directly concerns the Commissioner and Director of Rural Development and Panchayat Raj, District Collectors, treasury officials and rural local bodies connected with the funded works and liabilities. It does not set out any change to private land ownership, property registration, land classification or individual property rights.
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Common questions
Does this government order change my land title or property rights?
No change to private land titles or property rights is set out. The document sanctions and distributes government funding for deficit rural local bodies.
How much money was sanctioned under Government Order (Ms) No.54?
The Rural Development and Panchayat Raj Department sanctioned Rs.212,93,74,800 for 2020-21.
Who receives the sanctioned money?
Rs.106,46,87,400 is released to the Director of Rural Development and Panchayat Raj, and Rs.106,46,87,400 is placed with District Collectors for the stated liabilities.
What can the grant be used for?
The Directorate portion may settle RCSIDS 2020-21 bills and committed liabilities for works taken up during 2019-20. The District Collector portion may settle committed liabilities for works taken up during 2019-20.
