G.O. (Ms) No.68, Rural Local Bodies Tied Grant Second Instalment, 2021
The Rural Development and Panchayat Raj Department of the Government of Tamil Nadu issued Government Order (Ms) Number 68, dated 20 May 2021, sanctioning Rs.901.75 crore as the second instalment of the tied grant for rural local bodies for 2020-21 under the Fifteenth Finance Commission. It authorises distribution to District Panchayats, Panchayat Unions and Village Panchayats for sanitation, drinking water, rainwater harvesting and recycling, and does not set out changes to land ownership or land records.
What the government order does
Government Order (Ms) Number 68, dated 20 May 2021, issued by the Rural Development and Panchayat Raj Department, sanctions Rs.901,75,00,000 as the balance 50 percent of the Rural Local Bodies Tied Grant for 2020-21. The amount is the second instalment recommended by the Fifteenth Finance Commission.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and distribute the money immediately to:
- 36 District Panchayats.
- 388 Panchayat Unions.
- 12,525 Village Panchayats.
The sanctioned amount is divided as follows:
- District Panchayats, Rs.45,08,75,000.
- Panchayat Unions, Rs.135,26,25,000.
- Village Panchayats, Rs.721,40,00,000.
Permitted uses
Government Order (Ms) Number 68 requires the tied grant to be used for two categories of basic services:
- Sanitation and maintenance of open defecation free status.
- Drinking water supply, rainwater harvesting and recycling.
Rural local bodies should, as far as possible, earmark half of their tied grant for each category. If a local body has fully met the needs of one category, it may use the funds for the other category.
The Commissioner must follow the operational guidelines issued for tied and untied components under Government Order (Ms) Number 18 of the Rural Development and Panchayat Raj Department, dated 3 February 2021.
How the grant is distributed
Government Order (Ms) Number 68 records a vertical sharing ratio of 5:15:80 among District Panchayats, Panchayat Unions and Village Panchayats respectively.
Within each tier, the 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.
Relevance to property owners
Government Order (Ms) Number 68 concerns government grants to rural local bodies. It contains no provision changing land ownership, property classification, title records or individual property rights. Its practical relevance is the funding of sanitation and water related services delivered by rural local bodies.
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Common questions
Does Government Order (Ms) Number 68 change my patta or land ownership?
No provision in the document changes pattas, land ownership, property classification or title records. It sanctions a tied grant for rural local bodies.
What can a Village Panchayat use this grant for?
The grant may be used for sanitation and maintaining open defecation free status, or for drinking water supply, rainwater harvesting and recycling.
How much of the grant is allocated to Village Panchayats?
The sanctioned second instalment allocates Rs.721,40,00,000 to 12,525 Village Panchayats.
Can a Panchayat spend all of its tied grant on drinking water?
Yes, if it has fully met the needs of the sanitation category. Otherwise, local bodies should, as far as possible, earmark half of the grant for each of the two service categories.
