G.O. (Ms) No.9, Pooled Fund for Deficit Rural Local Bodies, 2022
The Government of Tamil Nadu, Rural Development and Panchayat Raj (PR-I(2)) Department, issued G.O. (Ms) No.9 dated 31 January 2022, authorising release of Rs.231,56,95,200 as the second instalment from the Pooled Fund for Deficit Rural Local Bodies for 2021-22. The money supports deficit Village Panchayats and Panchayat Unions, special local body problems, road maintenance and deficits in Combined Water Supply Schemes.
What the government order does
G.O. (Ms) No.9 dated 31 January 2022, issued by the Government of Tamil Nadu, Rural Development and Panchayat Raj (PR-I(2)) Department, authorises the Director of Rural Development and Panchayat Raj to draw and disburse Rs.231,56,95,200. This is the second instalment for 2021-22 and represents 80 per cent of the balance available under the Pooled Fund for Deficit Rural Local Bodies.
The Government had already sanctioned Rs.578,92,38,000 for the fund and released a first instalment of Rs.289,46,19,000.
How the pooled fund is structured
The Pooled Fund for Deficit Rural Local Bodies forms 10 per cent of the State Finance Commission funds distributed to rural local bodies. The broader devolution is apportioned among Village Panchayats, Panchayat Unions and District Panchayats in the ratio 55:37:8.
Horizontal distribution is based on:
- Total population from the 2011 Census, 60 per cent.
- Scheduled Caste and Scheduled Tribe population, 15 per cent.
- Area, 15 per cent.
- Per capita consumption expenditure distance, 10 per cent.
Intended uses
The fund framework provides for:
- 40 per cent for 127 deficit Panchayat Unions and 3,921 Village Panchayats. It may be used for a one time settlement of current consumption charges owed to the Tamil Nadu Generation and Distribution Corporation, under a mechanism adopted by the Director of Rural Development and Panchayat Raj.
- 20 per cent retained by the Director of Rural Development and Panchayat Raj for Village Panchayats and Panchayat Unions facing special problems that existing transfer mechanisms or schemes cannot address.
- 20 per cent distributed to District Collectors according to District Panchayat shares for similar special problems. Rs.38.69 crore from this portion may be used to maintain Pradhan Mantri Gram Sadak Yojana roads during 2021-22.
- 20 per cent released quarterly to the Tamil Nadu Water Supply and Drainage Board to meet deficits in Combined Water Supply Schemes, in addition to water charges collected from rural local bodies.
Who is affected
G.O. (Ms) No.9 dated 31 January 2022 directly concerns rural local bodies, District Collectors, the Directorate of Rural Development and Panchayat Raj and the Tamil Nadu Water Supply and Drainage Board. It does not state any change to individual land ownership, land classification, property registration or property charges.
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Common questions
Does G.O. (Ms) No.9 change my land ownership or classification?
No such change is stated. The government order concerns the release and use of grants for deficit rural local bodies.
How much was released as the second instalment?
The Government authorised release of Rs.231,56,95,200 as the second instalment for 2021-22.
Can the fund be used to pay electricity charges owed by rural local bodies?
Yes. The portion for deficit Panchayat Unions and Village Panchayats may be used for a one time settlement of current consumption charges owed to the Tamil Nadu Generation and Distribution Corporation.
Does the grant include support for rural roads and water supply schemes?
Yes. Rs.38.69 crore may be used to maintain Pradhan Mantri Gram Sadak Yojana roads for 2021-22, and part of the pooled fund is provided to the Tamil Nadu Water Supply and Drainage Board for deficits in Combined Water Supply Schemes.
