Lok Sabha Question No. 2856 (UNSTARRED), answered on 2018-01-04
Subject: Misuse of Panchayat Funds
Ministry: PANCHAYATI RAJ
Asked by: JANARDAN SINGH SIGRIWAL

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO.2856

TO BE ANSWERED ON 04.01.2018

## Misuse of Panchayat Funds

## 2856. SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) whether the Government has received any complaints of misuse of the Panchayat funds in various States/UTs;

(b) if so, the details thereof, State/UT wise including Bihar;

(c)  the  details  of  funds  allocated  to  Panchayats  during  the  last  three  years  and  the  current year, State/UT-wise; and

(d)  the  steps  taken/proposed  to  be  taken  by  the  Government  for  ensuring  balanced development of all the villages through Panchayati Raj Institutions (PRIs) in the country?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a) and (b): Yes. Since, Panchayats is a State subject, all complaints relating to Panchayats including those on misuse of funds are forwarded to the concerned State/UT for necessary action. Details of complaints received in the Ministry of Panchayati Raj regarding misuse of funds are given at Annexure I.

(c) &  (d) Article 243G  of  the Constitution endows  States to  devolve  powers  and responsibilities to Panchayats to enable them to function as institutions of self-government with respect to preparation and the implementation of plans for economic and social justice on subject matters listed in the Eleventh Schedule.

The  Government  of  India  devolves  funds  to  supplement  the  financial  resources  of Panchayats.  Under  the  FFC  award  for  the  period  2015-20  the  Government  of  India  has allocated  substantial  grants  to  the  tune  of  Rs.  2,00,292.20  crore  exclusively  for  the  Gram Panchayats  constituted  under  Part  IX  of  the  Constitution,  over  a  period  of  five  years  for delivering basic services, creation of reliable data base of local bodies' receipts  & expenditure through audited accounts and for improvement of own source tax and non-tax revenue of the Gram Panchayats. Details of funds allocated to Panchayats under Thirteenth Finance  Commission  award  for  the  year  2014-15  and  under  the  Fourteenth  Finance Commission (FFC) award for the years 2015-16 to 2017-18 are at Annexure-II.

Further, the Ministry of Panchayati Raj is providing proactive support to the States to (i)  formulate  convergent  Gram  Panchayat  Development  Plans  and  institutional  support structures  in  order  to  utilize  the  funds  available  with  Panchayats  optimally;  (ii)  to  develop budgeting, accounting and auditing manuals to improve the functioning of Panchayats; and (iii)  financial  support  for  capacity  building  of  the  various  stakeholders  of  Panchayats  for improved functioning.

*****

## Annexure-I

(Referred   to   in   reply   to   part   (b)   of   the   Lok   Sabha   Unstarred Question No. 2856 to be answered on 04.01.2018)

## State wise details of complaints received

| Sl. No.   | Name of State    |   Number of complaints received |
|-----------|------------------|---------------------------------|
| 1.        | Bihar            |                               5 |
| 2.        | Haryana          |                               8 |
| 3.        | Himachal Pradesh |                               1 |
| 4.        | Jharkhand        |                               1 |
| 5.        | Madhya Pradesh   |                               3 |
| 6.        | Rajasthan        |                               6 |
| 7.        | Uttar Pradesh    |                              11 |
|           | Total            |                              35 |

3

(Referred   to   in   reply   to   part   (c)   of   the   Lok   Sabha   Unstarred Question No.2856 to be answered on 04.01.2018)

State-wise allocation of  Union Finance Commission Grant to Rural Local Bodies for the years 2014-15 to 2017-18.

(Rs. in crore)

| Sl. No   | States            | 2014-15        | 2015-16        | 2016-17        | 2017-18        |
|----------|-------------------|----------------|----------------|----------------|----------------|
| (1)      | (2)               | Allocation (3) | Allocation (4) | Allocation (5) | Allocation (6) |
| 1        | Andhra Pradesh    | 823.63         | 934.34         | 1463.45        | 1686.85        |
| 2        | Arunachal Pradesh | 77.02          | 88.52          | 138.66         | 159.82         |
| 3        | Assam             | 443.47         | 584.80         | 915.98         | 1055.80        |
| 4        | Bihar             | 1392.65        | 2269.18        | 3554.23        | 4096.80        |
| 5        | Chhattisgarh      | 469.63         | 566.18         | 886.82         | 1022.18        |
| 6        | Goa               | 25.43          | 14.44          | 22.62          | 26.07          |
| 7        | Gujarat           | 655.88         | 932.25         | 1460.18        | 1683.08        |
| 8        | Haryana           | 305.41         | 419.28         | 656.72         | 756.98         |
| 9        | Himachal Pradesh  | 156.46         | 195.39         | 306.05         | 352.76         |
| 10       | Jammu& Kashmir    | 258.19         | 373.96         | 585.73         | 675.15         |
| 11       | Jharkhand         | 426.27         | 652.83         | 1022.53        | 1178.63        |
| 12       | Karnataka         | 1266.22        | 1002.85        | 1570.77        | 1810.55        |
| 13       | Kerala            | 548.10         | 433.76         | 679.40         | 783.12         |
| 14       | Madhya Pradesh    | 1156.51        | 1463.61        | 2292.46        | 2642.40        |
| 15       | Maharashtra       | 1545.72        | 1623.32        | 2542.61        | 2930.76        |
| 16       | Manipur           | 61.52          | 22.25          | 34.84          | 40.16          |
| 17       | #Meghalaya        | 87.92          | 0.00           | 0.00           | 0.00           |
| 18       | #Mizoram          | 56.67          | 0.00           | 0.00           | 0.00           |
| 19       | #Nagaland         | 85.74          | 0.00           | 0.00           | 0.00           |
| 20       | Odisha            | 728.30         | 955.52         | 1496.64        | 1725.11        |
| 21       | Punjab            | 316.31         | 441.70         | 691.84         | 797.45         |
| 22       | Rajasthan         | 1107.10        | 1471.95        | 2305.52        | 2657.47        |
| 23       | Sikkim            | 51.83          | 16.03          | 25.11          | 28.95          |
| 24       | Tamil Nadu        | 866.84         | 947.65         | 1484.31        | 1710.90        |
| 25       | Telangana         | 645.56         | 580.34         | 908.99         | 1047.75        |
| 26       | Tripura           | 82.35          | 36.24          | 56.76          | 65.43          |
| 27       | Uttar Pradesh     | 2751.40        | 3862.60        | 6050.02        | 6973.57        |
| 28       | Uttarakhand       | 166.15         | 203.26         | 318.37         | 366.97         |
| 29       | West Bengal       | 1164.98        | 1532.21        | 2399.91        | 2766.26        |
|          | Total             | 17723.26       | 21624.46       | 33870.52       | 39040.97       |