G.O. (Ms.) No. 70, Fifteenth Central Finance Commission Basic Grant to Rural Local Bodies, 2020-21
The Tamil Nadu Rural Development and Panchayat Raj Department issued Government Order (Ms.) Number 70, dated 21 May 2021, sanctioning Rs.548.48 crore as the balance second instalment of the untied Basic Grant for Rural Local Bodies for 2020-21. The grant is distributed among Village Panchayats, Panchayat Unions and District Panchayats for local needs, but cannot be used for salaries or other established expenditure.
What the document does
Government Order (Ms.) Number 70, dated 21 May 2021, of the Tamil Nadu Rural Development and Panchayat Raj Department sanctions Rs.548.48 crore under the Fifteenth Central Finance Commission Basic Grant. It is the balance amount of the second instalment of the untied component for Rural Local Bodies for 2020-21.
The Commissioner of Rural Development and Panchayat Raj is authorised to draw and distribute the money to:
- 12,525 Village Panchayats.
- 388 Panchayat Unions.
- 36 District Panchayats.
How the grant is divided
The Tamil Nadu Rural Development and Panchayat Raj Department applies a vertical sharing ratio of 5:15:80 among the three tiers of Rural Local Bodies. District Panchayats receive 5 percent, Panchayat Unions receive 15 percent and Village Panchayats receive 80 percent.
The sanctioned amounts are:
- Rs.438.784 crore for Village Panchayats.
- Rs.82.272 crore for Panchayat Unions.
- Rs.27.424 crore for District Panchayats.
- Total, Rs.548.48 crore.
For distribution within each tier, the document refers to the Fifth State Finance Commission formula. The listed factors in the supplied text include population according to the 2011 census at 60 percent, Scheduled Caste and Scheduled Tribe population at 15 percent, and per capita consumption expenditure distance at 10 percent.
Permitted use and controls
Government Order (Ms.) Number 70 identifies the released amount as an untied grant. Rural Local Bodies may use it for location-specific felt needs, except salaries or other established expenditure.
Use of the grant must follow the Government of India guidelines and the implementation guidelines approved in Government Order (Ms.) Number 18 of the Rural Development and Panchayat Raj Department, dated 3 February 2021.
The document also authorises expenditure pending additional budget provision and requires the expenditure to be placed before the Legislature through specific inclusion in the Supplementary Estimates for 2021-22.
Relevance to property owners and buyers
Government Order (Ms.) Number 70 concerns funding for rural local government bodies. It does not set out changes to land ownership, patta records, registration, land classification or property transaction requirements. Its practical relevance is that Village Panchayats and other rural bodies receive untied funds for eligible local needs.
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 Government Order (Ms.) Number 70 change my patta or land ownership?
No land ownership or patta change is set out in the document. It deals with the sanction and distribution of grants to Rural Local Bodies.
Can a Village Panchayat use this grant for any purpose?
The grant may be used for location-specific felt needs. It cannot be used for salaries or other established expenditure, and its use must follow the applicable government guidelines.
How much of the grant goes to Village Panchayats?
Village Panchayats are allocated Rs.438.784 crore. The document applies an 80 percent vertical share to Village Panchayats.
Which rural bodies receive money under the grant?
The Commissioner of Rural Development and Panchayat Raj is authorised to distribute the grant to 12,525 Village Panchayats, 388 Panchayat Unions and 36 District Panchayats.
