Lok Sabha Question No. 2228 (UNSTARRED), answered on 2022-03-15
Subject: Funds Released under Finance Commissions
Ministry: PANCHAYATI RAJ
Asked by: Ramdas Chandrabhanji Tadas, Dayakar Pasunoori, Kavitha Malothu, Gaddam Ranjith Reddy, Venkatesh Netha Borlakunta

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA

## UNSTARRED QUESTION NO. 2228

ANSWERED ON 15.03.2022

## FUNDS RELEASED UNDER FINANCE COMMISSIONS

## 2228.   SHRI RAMDAS C. TADAS:

SHRI PASUNOORI DAYAKAR:

SHRIMATI KAVITHA MALOTHU:

DR. G. RANJITH REDDY:

SHRI VENKATESH NETHA BORLAKUNTA:

Will the Minister of Panchayati Raj be pleased to state:

- (a) the details of allocation and release of funds to the State of Telangana under 14th and 15th Finance Commissions during each of the last three years and the  current year, State-wise;
- (b) whether the entire fund awarded by 14th Finance Commission has not been released, if so, the reasons therefor;
- (c) the  steps  taken  by  the  Government  to  release  the  entire  fund  allocated  by  the  14th Finance Commission to the State of Telangana;
- (d) the details of efforts being made by the Ministry to persuade Finance Ministry to release funds under 14th Finance Commission; and
- (e) the  details  of  guidelines  and  permissible  activities  for  Gram  Panchayat/Panchayat Samiti/  Zilla  Panchayat  permissible  activities  under  the  15th  Finance  Commission Basic (Untied) Grants?

## ANSWER

## THE MINISTER OF STATE FOR PANCHAYATI RAJ

(SHRI KAPIL MORESHWAR PATIL)

(a) The details of allocation and release of funds to the State of Telangana under 14th and 15th Finance Commissions during the last three years and the current year, is given in the table below:

(Rs. in crore)

|        | Under 14 th Finance Commission   | Under 14 th Finance Commission   | Under 14 th Finance Commission   | Under 14 th Finance Commission   | Under 15 th Finance Commission   | Under 15 th Finance Commission   | Under 15 th Finance Commission   | Under 15 th Finance Commission   |
|--------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| FY     | 2018-19                          | 2018-19                          | 2019-20                          | 2019-20                          | 2020-21                          | 2020-21                          | 2021-22                          | 2021-22                          |
|        | Allocation                       | Release                          | Allocation                       | Release                          | Allocation                       | Release                          | Allocation                       | Release                          |
| Amount | 1209.53                          | 1071.59                          | 1628.68                          | 1451.3                           | 1847.00                          | 1847.00                          | 1365.00                          | 682.50                           |

(b) to (d) As 14 th Finance Commission award period (2015-20) is over, further funds for Rural Local  Bodies  under  14 th Finance  Commission  recommendations  are  not  being  released  by Ministry  of  Finance.  However,  the  rural  local  body  grants  are  now  being  released  by  the Ministry of Finance as per 15 th Finance Commission recommendations for the period 2020-26.

(e) The  operational  guidelines  for  the  implementation  of  15 th   Finance  Commission recommendations on Rural Local Bodies grants during the 2021-22 to 2025-26 has been issued by the Ministry of Finance vide their letter dated 14.07.2021. The guidelines prescribe that the Basic (Untied) Grants can be utilised by the Panchayats for felt needs on 29 subjects enshrined under Schedule XI of the Constitution, except for the salary and other establishment costs. Further, the Ministry of Panchayati Raj has issued an advisory dated 23 rd August, 2021 to all States  communicating  indicative  items  of  works/activities  that  may  be  taken  up  by  the Panchayats by utilizing Basic (Untied) Grants. These items include National priority areas of Health, Education, Nutrition; immunisation of children; prevention of malnutrition of children; construction and repair of Gram Panchayat Bhawan, roads, foot paths and street lighting etc.

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