Lok Sabha Question No. 4387 (UNSTARRED), answered on 2018-03-22
Subject: Funds for Local Bodies in Tamil Nadu
Ministry: PANCHAYATI RAJ
Asked by: R.K. BHARATHI MOHAN, PR. SENTHILNATHAN, V. SATHYABAMA

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO.4387

TO BE ANSWERED ON 22.03.2018

## Funds for Local Bodies in Tamil Nadu

## 4387. SHRI BHARATHI MOHAN R.K.: SHRI PR. SENTHIL NATHAN: SHRIMATI V. SATHYA BAMA:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) whether the Government has allocated funds for the local bodies in Tamil Nadu for implementing various rural projects;

(b) if so, the details thereof;

(c) the funds allocated under each head for the implementation of rural projects and schemes in the State during the last three years;

(d)  whether  the  Government  has  fixed  any  specific  norms  and  rules  for  the  direct  funding  to  the village and town panchayats; and

(e) if so, the details thereof?

## ANSWER

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

(a)  to  (c):  Yes.  Rs.1710.90  crore  has  been  allocated  to  Gram  Panchayats  in  Tamil  Nadu  under Fourteenth Finance Commission (FFC ) grants for the current  year 2017-18.  Details of allocation and release of funds for implementation of rural projects and schemes in the State of Tamil Nadu during the last three years is given at Annexure.

(d) & (e) :  The  FFC funds are released by the Government of India to duly constituted local bodies i.e. where elections have been held and an elected body is in place as provided in Part IX and IX A of the Constitution. Subsequent instalment of grants is subject to receipt of Utilization Certificate in the prescribed  format  for  the  previous  instalment  drawn.  The  FFC  funds  are  released  only  to  Gram Panchayats among rural local bodies.  Besides, for release of Performance Grant for the years 201718 to 2019-20 to Rural Local Bodies, a Scheme for determining eligibility and distribution of these grants  has  been  formulated  with  four  mandatory  conditions-submission  of  Audited  Accounts, increase in Own   Source Revenue (OSR), Completion/uploading of Gram Panchayat Development Plan  (GPDP) and Uploading of sector-wise  FFC expenditure details  in  the  Dashboard  application developed by the Ministry. The marking system for distribution of Performance Grant now includes achievement in collection of own source of revenue, Open Defecation Free (ODF) status and Child Immunization  in  the  Gram  Panchayats.  There  is  also  similar  norm  for  providing  basic  grant  and performance grant to urban local bodies.

## Annexure referred in reply to part (a) to (c) of the Lok Sabha Unstarred Question No. 4387 for 22.03.2018 regarding Funds for Local Bodies in Tamil Nadu

## Details of allocation and release of funds for implementation of rural projects and schemes in the State of Tamil Nadu

(Rs in crore)

| Sl. No   | Grant/Schemes                                                        | 2014-15           | 2014-15   | 2015-16     | 2015-16   | 2016-17     | 2016-17   | 2017-18     | 2017-18   |
|----------|----------------------------------------------------------------------|-------------------|-----------|-------------|-----------|-------------|-----------|-------------|-----------|
| Sl. No   | Grant/Schemes                                                        | AllocationRelease |           | Allocatio n | Release   | Allocatio n | Release   | Allocatio n | Release   |
| 1.       | Finance Commission grants for Rural Local Bodies                     | 866.84            | 668.48    | 947.65      | 947.65    | 1484.3 1    | 1484.31   | 1710.9 0    | 758.06    |
| 2.       | PradhanMantri Gram SadakYojana (PMGSY)                               | 221.89            | 221.89    | 205.00      | 205.00    | 254.00      | 254.00    | 598.00      | 589.25    |
| 3.       | PradhanMantri AwasYojana (PMAY)                                      | 374.00            | 374.00    | 369.70      | 369.70    | 2116.1 0    | 1856.60   | 1562.6 0    | -         |
| 4.       | Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)# | -                 | 3781.80   | -           | 5470.37   | -           | 4552.78   | -           | 5831.6 6  |

#There is no annual allocation under MGNREGS. Fund release to State/Union Territories under the scheme is a continuous process based on various factors including labour budget, opening balance, pending liabilities, overall performance etc.

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