Lok Sabha Question No. 2201 (UNSTARRED), answered on 2022-12-20
Subject: Release of Funds to Panchayats
Ministry: PANCHAYATI RAJ
Asked by: Chandrani Murmu

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 2201

ANSWERED ON 20.12.2022

## RELEASE OF FUNDS TO PANCHAYATS

2201. MS CHANDRANI MURMU:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) whether the Government has released funds to panchayats across the country;
- (b) if so, the ratio of the fund distribution among the gram, block and zila panchayats; and
- (c) whether any Committee has been constituted to monitor the activities aided by this fund and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR PANCHAYATI RAJ

(SHRI KAPIL MORESHWAR PATIL)

- (a) & (b) Fifteenth Finance Commission (XV FC) grants to the Rural Local Bodies (RLBs) for  its  award  period  2020-21  to  2025-26  are  being  released  to  the  Panchayats  across  the country. So far, the following released have been made:-

| Year                  |   2020-21 |   2021-22 |   2022-23 (as on 14 .12.2022) |
|-----------------------|-----------|-----------|-------------------------------|
| Amount (Rs. in crore) |     60750 |   43854.4 |                       19983.7 |

As  per  guidelines  issued  by  Ministry  of  Finance  on  operationalization  of  XV  FC recommendations to  RLBs,  the  inter-se  distribution  of  XV  FC  Grants  among  all  the  three tiers  of  Panchayats  shall  be  done  by  the  State  Government  on  the  basis  of  accepted recommendations  of  the  State  Finance  Commission  (SFC)  and  in  conformity  with  the following bands:-

| Range for Distribution   | Gram Panchayats   | Block Panchayats   | District Panchayats   |
|--------------------------|-------------------|--------------------|-----------------------|
| Minimum                  | 70%               | 10%                | 5%                    |
| Maximum                  | 85%               | 25%                | 15%                   |

States which have only a two tier system with only village and district panchayats, the allocation will be in the following bands:-

| Range for Distribution   | Gram Panchayats   | District Panchayats   |
|--------------------------|-------------------|-----------------------|

| Minimum   | 70%   | 15%   |
|-----------|-------|-------|
| Maximum   | 85%   | 30%   |

However,  in  the  event  of  SFC  recommendations  not  being  available,  the  inter-se distribution among all the tiers shall be decided by the concerned State Government within the bands indicated above.

(c)      No Sir, however, for providing guidance and support to the State Governments and Local Bodies for implementation of the recommendations of the Fifteenth Finance Commission (XV FC) at the central level a Coordination Committee under the chairmanship of  Secretary,  Ministry  of  Panchayati  Raj  has  been  constituted.  Similarly,  for  Concurrent Evaluation  of  Utilization  of  XV  FC  grants'  to  Local  Bodies  High  Level  Monitoring Committee (HLMC) at the State Level has been constituted under the  chairperson ship of Chief Secretary of the concerned State.

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