G.O. (Ms.) No. 66, State Finance Commission Grants for 2021-22, 2021
The Rural Development and Panchayat Raj Department issued G.O. (Ms.) No. 66 on 12 May 2021 to sanction and release Rs.1,037,38,23,000 in State Finance Commission grants to Village Panchayats, Panchayat Unions and District Panchayats for April 2021 to June 2021. The funding covers minimum grants and population grants for rural local bodies and does not deal with land ownership, property transfers or individual land records.
What the government order does
G.O. (Ms.) No. 66 of the Rural Development and Panchayat Raj Department, dated 12 May 2021, sanctions Rs.1,037,38,23,000 for the three tiers of Panchayat Raj Institutions. The release covers three months, from April 2021 to June 2021, within the State Finance Commission grant arrangements for 2021-22.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and distribute the money after making permitted deductions, including pension contribution and other deductions specifically authorised by government orders.
Rural bodies covered
The sanctioned grant is distributed among:
- Village Panchayats.
- Panchayat Unions.
- District Panchayats.
Village Panchayats and Panchayat Unions receive both minimum grants and population grants. District Panchayats receive population grants.
Key grant arrangements
G.O. (Ms.) No. 66 applies the recommendations of the Fifth State Finance Commission. Its main provisions include:
- A minimum lump sum grant of Rs.7 lakh per Village Panchayat per year, deducted first from the State Finance Commission share allocated to Village Panchayats.
- A minimum lump sum grant of Rs.40 lakh per Panchayat Union per year, deducted first from the share allocated to Panchayat Unions.
- Distribution of the remaining Village Panchayat and Panchayat Union shares through the horizontal sharing formula.
- Distribution of the District Panchayat share through the same sharing mechanism.
- Horizontal distribution based on total population from the 2011 Census at 60 percent, Scheduled Caste and Scheduled Tribe population at 15 percent, area at 15 percent, and per capita consumption expenditure distance at 10 percent.
The document records budget provisions for District Panchayats, Panchayat Unions, Village Panchayats, the Capital Grant Fund and the Pooled Fund for Deficit Rural Local Bodies.
Relevance to property owners and buyers
G.O. (Ms.) No. 66 concerns government funding for rural local bodies. It contains no provision changing land classification, ownership, patta, registration, planning permission or property boundaries. A buyer or owner may be affected only indirectly through the finances available to the relevant Village Panchayat, Panchayat Union or District Panchayat.
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. 66 change my patta or land ownership?
No. The document sanctions State Finance Commission grants to rural local bodies and contains no provision changing patta, ownership or property boundaries.
Which local bodies receive money under this government order?
The funding goes to Village Panchayats, Panchayat Unions and District Panchayats. Village Panchayats and Panchayat Unions receive minimum and population grants, while District Panchayats receive population grants.
What period does the sanctioned release cover?
The sanctioned release of Rs.1,037,38,23,000 covers April 2021 to June 2021.
How are population based grants distributed among rural local bodies?
The horizontal formula uses total population from the 2011 Census at 60 percent, Scheduled Caste and Scheduled Tribe population at 15 percent, area at 15 percent, and per capita consumption expenditure distance at 10 percent.
