G.O. (Ms) No.59, Release of Second Instalment of Fifteenth Finance Commission Basic Grant, 2021
The Rural Development and Panchayat Raj (PR-1) Department issued G.O. (Ms) No.59 dated 09.04.2021, sanctioning Rs.353.27 crore as the second instalment of the Fifteenth Finance Commission Basic Grant for rural local bodies for 2020-21. The untied grant is distributed among Village Panchayats, Panchayat Unions and District Panchayats for local needs, but it cannot be used for salaries or other established expenditure.
What the government order does
G.O. (Ms) No.59 dated 09.04.2021 of the Rural Development and Panchayat Raj (PR-1) Department sanctions Rs.353.27 crore as the second instalment of the General Basic Grant recommended by the Fifteenth Finance Commission for 2020-21. The amount had been released by the Ministry of Finance, Government of India, for rural local bodies in Tamil Nadu.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and immediately disburse the grant to:
- 12,525 Village Panchayats.
- 388 Panchayat Unions.
- 36 District Panchayats.
How the grant is divided
The Rural Development and Panchayat Raj (PR-1) Department applies a vertical sharing ratio of 5:15:80 among District Panchayats, Panchayat Unions and Village Panchayats respectively.
The sanctioned allocations are:
- Rs.282,61,60,000 for Village Panchayats.
- Rs.52,99,05,000 for Panchayat Unions or intermediate level Panchayats.
- Rs.17,66,35,000 for District Panchayats.
Horizontal distribution within each tier follows the Fifth State Finance Commission formula. The listed factors include population according to the 2011 Census, area, Scheduled Caste and Scheduled Tribe population, and per capita consumption expenditure distance.
Permitted use
The Fifteenth Finance Commission Basic Grant released through G.O. (Ms) No.59 dated 09.04.2021 is untied. Rural local bodies may use it for location-specific felt needs, except salaries or other established expenditure.
Use of the money must follow the state-specific guidelines issued for the tied and untied components of the Fifteenth Finance Commission Grant in G.O. (Ms) No.18, Rural Development and Panchayat Raj (PR-1) Department, dated 03.02.2021.
Relevance to property owners and buyers
G.O. (Ms) No.59 dated 09.04.2021 concerns government grant funding for rural local bodies. It does not state that it changes land ownership, property registration, land classification, planning permission or individual property rights. A property owner or buyer may be indirectly affected if a local rural body uses its allocation for an eligible local need, but the document does not identify particular projects or properties.
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Common questions
Does this government order change my land ownership or classification?
No such change is stated. The document sanctions and distributes a finance grant to rural local bodies and does not address individual ownership or land classification.
Can a Village Panchayat use this grant to pay salaries?
No. The untied Basic Grant may be used for location-specific felt needs, except salaries or other established expenditure.
Which rural local bodies receive the money?
The grant is to be disbursed to 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats.
How much of the grant is allocated to Village Panchayats?
Village Panchayats are allocated Rs.282,61,60,000. The approved vertical sharing ratio gives Village Panchayats 80 parts, Panchayat Unions 15 parts and District Panchayats 5 parts.
