Lok Sabha Question No. 1099 (UNSTARRED), answered on 2017-12-21
Subject: Allocations to Panchayats
Ministry: PANCHAYATI RAJ
Asked by: PRAHLAD SINGH PATEL

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO.1099

TO BE ANSWERED ON 21.12.2017

## Allocations to Panchayats

## 1099. SHRI PRAHLAD SINGH PATEL:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) the details of the allocations made to Panchayats and Nagar Palikas during the last two years in Madhya Pradesh;

(b) whether they are facing financial crunch; and

(c) if so, the steps taken by the Government to meet the situation?

## ANSWER

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

(a) The details of the allocations made to Gram Panchayats and Nagar Palikas by Central Government  under  the  Fourteenth  Finance  Commission  (FFC)  Award  during  the  last  two years in Madhya Pradesh is given in Annexure.

(b) and (c) Under Fourteenth Finance Commission award (2015-20) grants to the tune of Rs.2,87,436    crore  have  been  allocated  to  local  bodies  duly  constituted  under  Part  IX  and IXA  of  the  Constitution  viz.,    Rs.  2,00,292.20  crore  and  Rs.  87,143.80  crore  to  Gram Panchayats  and  Municipalities  respectively  which  is  more  than  three  times  the  allocation under the Thirteenth Finance Commission award.   It may also be seen from the annexure that allocation  to  local  bodies  in  Madhya  Pradesh  has  increased  substantially.    No  Grants  have been  allocated  to  District  and  Intermediate  (Block/Mandal)  Panchayats  under  FFC  award. The State Governments are expected to take care of the needs of District and Intermediate Panchayats from the enhanced fiscal space made available to them  by the FFC on account of higher  devolution  from  32%  to  42%  of  the  Union  Government's  net  tax  receipts.  State Governments are also expected to transfer a certain percentage of their own tax and non-tax revenues to local bodies based on the recommendations of their State Finance Commissions.

Ministry of Housing and Urban Affairs have informed that most Urban Local Bodies (ULBs) in the country are financially constrained. Urban Development is a State subject and Government  of  India  only  facilitates  the  State  Governments  and  ULBs  through  various programmes, schemes and guidelines.

To improve the financial condition and governance of the  ULBs  and  RLBs, (Panchayats of all levels) financial assistance is extended to States under various programmes such  as  Atal  Mission  for  Rejuvenation  and      Urban      Transformation      (AMRUT)      and Smart Cities Mission, Swachh Bharat Mission, Heritage City Development and Augmentation Yojana (HRIDAY), Pradhan Mantri Awas Yojana (PMAY)-Housing for All (Urban)  and  Deendayal  Antyodaya  Yojana-National  Urban  Livelihood  Mission  (DAYNULM),  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme  (MGNREGS), Deendayal Antayodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM) etc.

## Annexure

(Annexure  referred  to  in  reply  to  Part  (a)  of  the  Lok  Sabha  Unstarred  Question No.1099 to be answered on 21.12.2017)

Details  of  the  allocations  made  to  Panchayats  and  Nagar  Palikas  under  FFC  award during the last two years in Madhya Pradesh.

(Rs. in crore)

|   Sl. No. | Local Body      |   2015-16 |   2016-17 |
|-----------|-----------------|-----------|-----------|
|         1 | Gram Panchayats |   1463.61 |   2292.46 |
|         2 | Nagar Palikas   |    496.79 |    890.91 |

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