G.O. (Ms) No.67, Fifteenth Finance Commission Basic Grant for Rural Local Bodies, 2021-22
The Rural Development and Panchayat Raj Department issued G.O. (Ms) No.67 on 18 May 2021 to sanction Rs.533.20 crore as the first instalment of the Fifteenth Finance Commission Basic Untied Grant for rural local bodies for 2021-22. It authorises distribution to 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats in Tamil Nadu.
What the government order does
G.O. (Ms) No.67, issued by the Rural Development and Panchayat Raj Department on 18 May 2021, sanctions Rs.533,20,00,000 as the first instalment of the General Basic Grant under the Fifteenth Finance Commission for 2021-22. The amount is treated as an advance and is to be distributed among rural local bodies in Tamil Nadu.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and disburse the money to:
- 12,525 Village Panchayats.
- 388 Panchayat Unions.
- 36 District Panchayats.
Allocation among rural local bodies
G.O. (Ms) No.67 applies the approved vertical sharing ratio of 5:15:80 for District Panchayats, Panchayat Unions and Village Panchayats respectively. The sanctioned amounts are:
- Village Panchayats, Rs.426.56 crore.
- Panchayat Unions, Rs.79.98 crore.
- District Panchayats, Rs.26.66 crore.
Within each type of rural local body, the stated horizontal distribution formula is:
- Population according to the 2011 Census, 60 percent.
- Area, 15 percent.
- Scheduled Caste and Scheduled Tribe population, 15 percent.
- Per capita consumption expenditure distance, 10 percent.
Permitted use of the grant
The Basic Untied Grant sanctioned through G.O. (Ms) No.67 may be used by rural local bodies for location-specific needs. It cannot be used for salaries or other establishment expenditure. Expenditure for auditing accounts by external agencies approved by the State Government may be paid from the grant.
The grant must be used in accordance with the guidelines issued by the Rural Development and Panchayat Raj Department in G.O. (Ms) No.18 dated 3 February 2021.
Relevance to property owners and buyers
G.O. (Ms) No.67 concerns government funding for Panchayats. It does not contain provisions changing land ownership, property title, land classification, land use or an individual property owner's rights. Property owners may be affected only indirectly where a rural local body uses its allocation for eligible local needs.
The operative sanction identifies the grant as being for 2021-22, although an earlier recital in the document describes the Central Government release as being for 2020-21.
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.67 change my land title or ownership rights?
No such change is set out in the document. G.O. (Ms) No.67 sanctions and distributes a Finance Commission grant to rural local bodies.
Can a Village Panchayat use this grant to pay staff salaries?
No. The Basic Untied Grant cannot be used for salaries or other establishment expenditure.
How much of the sanctioned amount goes to Village Panchayats?
Village Panchayats are allocated Rs.426.56 crore. The Commissioner is authorised to disburse the grant to 12,525 Village Panchayats.
Can the grant be used for auditing Panchayat accounts?
Yes. Expenditure on auditing accounts by external agencies approved by the State Government may be paid from the Basic Untied Grant.
