Lok Sabha Question No. 1530 (UNSTARRED), answered on 2021-12-07
Subject: Funds Gram Panchayats
Ministry: PANCHAYATI RAJ
Asked by: Ravneet Singh, Vijayakumar (alias) Vijay Vasanth

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO. 1530 ANSWERED ON 07.12.2021

## FUNDS GRAM PANCHAYATS

## 1530.  SHRI RAVNEET SINGH BITTU: SHRI VIJAYAKUMAR (ALIAS) VIJAY VASANTH:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) whether it is a fact that the Government has suggested that gram panchayats may lease their assets to raise their own revenue;
- (b) if so, the details thereof along with the reasons therefor;
- (c) the  details  of  the  advisory  issued  by  the  Government  recently  to  gram  panchayats suggesting a number of activities to be done across the country;
- (d) whether there is any hindrance to the infrastructural and developmental activities of the gram panchayats due to lack of adequate financial resources or delay in release of funds by the Government and if so, the details thereof; and
- (e) the  details  of  the  measures  being  taken  by  the  Government  to  ensure  timely  and adequate fund availability to the gram panchayats in the country?

## ANSWER

## THE MINISTER OF STATE FOR PANCHAYATI RAJ

## (SHRI KAPIL MORESHWAR PATIL)

(a) & (b) Ministry of Panchayati Raj (MoPR), in its advisory dated 16.08.2021 issued on the subject  of  'Making  Gram  Sabha  Vibrant',  has  suggested  a  sample  calendar  indicating  the month-wise topics to be covered for discussion in the Gram Sabha agenda. In this calendar, one of the  subjects  suggested  for  review  by  the  Gram  Panchayat  is  also  lease  of  common property assets for improving panchayat's Own Sources of Revenue (OSR).

(c) In  the  MoPR  advisory  dated  16.08.2021  on  the  subject  of  'Making  Gram  Sabha Vibrant', several suggestions have been made, prominent amongst them being the restructuring of the frequency and methodology of conduct of the Gram Sabha meetings, the contents of the agenda and nature of deliberations in  Gram Sabha meetings, participation of district/block administration officials in the Gram Sabha meetings, awareness creation measures to ensure enhanced  participation  of  eligible  citizens  in  Gram  Sabha  and  the  support  systems  to  be developed in terms of strengthening the sub-committees of the Gram Panchayats.

It  has  also  been  suggested  that  an  annual  calendar  be  drawn  up  in  advance  for  the  Gram Panchayats (GPs) in the State/UT for the Gram Sabha meetings, for which an indicative monthwise topics to be covered for discussion in the Gram Sabha agenda has also been suggested. It has been suggested that the ward members of the GP should be invariably made a member of at least one of the sub-committees and the active participation of the ward members in the day to day affairs of the GPs may be ensured by assigning them duty, by rotation, for the upkeep and functioning of the GP office.

(d) and (e) Article 243G of the Constitution provides for powers, authority and responsibilities of  Panchayats  wherein  it  prescribes  that  the  Legislature  of  a  State  may,  by  law,  endow panchayats with such powers and authority as may be necessary to enable them to function as institutions  of  self-government  and  such  law  may  contain  provisions  for  the  devolution  of powers  and  responsibilities  upon  panchayats,  at  the  appropriate  level,  subject  to  such conditions as may be specified therein, with respect to-

-  the preparation of plans for economic development and social justice;
-  the implementation of schemes for economic development and social   justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.

These provisions enable the Panchayats to implement adequate infrastructural and developmental  activities  with  the  funds  devolved  to  them.  Under  the  Fourteenth  Finance Commission for the award period 2015-2020, Grants of Rs. 2,00,292.20 crore were allocated to  the  Gram  Panchayats  in  26  States  which  was  more  than  three  times  the  corresponding allocation of Thirteenth Finance Commission. Under Fifteenth Finance Commission, Grants to the tune of Rs. 60,750  crore are allocated for the interim period FY 2020-21 and Rs.2,36,805 Crore are allocated for the period FY 2021-26 to Panchayats in all the three tiers and Traditional Local Bodies and Sixth Schedule areas in 28 States. The Grants are in two parts, namely, Basic (Untied) Grants and Tied Grants. The Untied Grants can be utilised for felt needs on 29 subjects enshrined under Schedule XI of the Constitution. The Tied Grants are to be utilised for the national focus areas of Water and Sanitation. Details of the State-wise allocation and release of  Fourteenth  Finance Commission and Fifteenth Finance Commission Grants are given at Annexure-I and Annexure-II respectively.

Release  of  grants  under  the  Fifteenth  Finance  Commission  is  subject  to  submission  of utilization certificates / grants transfer certificate for the previous instalments drawn along with compliance of other stipulated conditions by the States. Funds under the Rashtriya Gram Swaraj Scheme are released to States on the basis of approved plans, submission of requisite documents viz. Utilization Certificate, Auditor's Report etc and compliance of other directions as and when issued by Government of India.

***

## Annexure-I

## Annexure referred to in reply to part (d) and (e) of the Lok Sabha Unstarred Question No. 1530 answered on 07.12.2021

Allocation and Release of Fourteenth Finance Commission Grants to the States for Gram Panchayats

(Rs. in crore)

| Sl. No.   | States            | 2015-16    | 2015-16   | 2016-17    | 2016-17   | 2017-18    | 2017-18   | 2018-19    | 2018-19   | 2019-20    | 2019-20   |
|-----------|-------------------|------------|-----------|------------|-----------|------------|-----------|------------|-----------|------------|-----------|
| Sl. No.   | States            | Allocation | Release   | Allocation | Release   | Allocation | Release   | Allocation | Release   | Allocation | Release   |
| 1         | Andhra Pradesh    | 934.34     | 928.41    | 1463.45    | 1454.05   | 1686.85    | 1675.88   | 1947.32    | 1729.23   | 2622.13    | 2336.56   |
| 2         | Arunachal Pradesh | 88.52      | 88.52     | 138.66     | 138.45    | 159.82     | 141.14    | 184.49     | 163.83    | 248.44     | 221.38    |
| 3         | Assam             | 584.80     | 584.80    | 915.98     | 915.98    | 1055.80    | 1055.80   | 1218.82    | 1082.32   | 1641.19    | 1462.45   |
| 4         | Bihar             | 2269.18    | 2269.18   | 3554.23    | 3142.08   | 4096.80    | 3630.39   | 4729.38    | 4199.71   | 6368.25    | 5674.70   |
| 5         | Chhattisgarh      | 566.18     | 566.18    | 886.82     | 886.82    | 1022.18    | 1022.18   | 1180.02    | 1047.86   | 1588.94    | 1415.89   |
| 6         | Goa               | 14.44      | 14.44     | 22.62      | 22.62     | 26.07      | 26.07     | 30.10      | 26.73     | 40.53      | 36.12     |
| 7         | Gujarat           | 932.25     | 932.25    | 1460.18    | 1460.18   | 1683.08    | 1683.08   | 1942.96    | 1725.36   | 2616.26    | 2331.33   |
| 8         | Haryana           | 419.28     | 419.28    | 656.72     | 656.72    | 756.98     | 756.98    | 873.86     | 775.99    | 1176.68    | 1048.53   |
| 9         | Himachal Pradesh  | 195.39     | 195.39    | 306.05     | 306.05    | 352.76     | 312.60    | 407.24     | 361.63    | 548.36     | 488.64    |
| 10        | Jammu & Kashmir   | 373.96     | 367.72    | 585.73     | 474.41    | 675.15     | 470.97    | 779.40     | 544.83    | 1049.49    | 0.00      |
| 11        | Jharkhand         | 652.83     | 652.83    | 1022.53    | 1022.53   | 1178.63    | 1044.45   | 1360.62    | 1208.24   | 1832.12    | 1632.59   |
| 12        | Karnataka         | 1002.85    | 972.36    | 1570.77    | 1547.66   | 1810.55    | 1784.26   | 2090.10    | 1841.54   | 2814.39    | 2504.13   |
| 13        | Kerala            | 433.76     | 433.76    | 679.40     | 679.39    | 783.12     | 773.54    | 904.03     | 802.78    | 1217.30    | 1084.73   |
| 14        | Madhya Pradesh    | 1463.61    | 1463.61   | 2292.46    | 2292.46   | 2642.40    | 2638.21   | 3050.41    | 2708.78   | 4107.48    | 3660.14   |
| 15        | Maharashtra       | 1623.32    | 1623.32   | 2542.61    | 2542.61   | 2930.76    | 2597.10   | 3383.28    | 3004.37   | 4555.70    | 4059.55   |
| 16        | Manipur           | 22.25      | 22.25     | 34.84      | 34.84     | 40.16      | 40.16     | 46.36      | 41.17     | 62.43      | 55.63     |
| 17        | Odisha            | 955.52     | 955.52    | 1496.64    | 1496.64   | 1725.11    | 1725.11   | 1991.48    | 1768.44   | 2681.59    | 2389.54   |
| 18        | Punjab            | 441.70     | 441.70    | 691.84     | 691.85    | 797.45     | 706.66    | 920.58     | 817.48    | 1239.58    | 1104.58   |
| 19        | Rajasthan         | 1471.95    | 1471.95   | 2305.52    | 2305.52   | 2657.47    | 2657.47   | 3067.80    | 2724.22   | 4130.90    | 3681.01   |
| 20        | Sikkim            | 16.03      | 16.04     | 25.11      | 25.11     | 28.95      | 28.95     | 33.41      | 29.67     | 44.99      | 40.09     |
| 21        | Tamil Nadu        | 947.65     | 947.65    | 1484.31    | 1484.31   | 1710.90    | 1516.12   | 1975.07    | 1753.87   | 2659.50    | 1821.11   |
| 22        | Telangana         | 580.34     | 580.34    | 908.99     | 908.99    | 1047.75    | 1047.75   | 1209.53    | 1071.59   | 1628.68    | 1451.30   |
| 23        | Tripura           | 36.24      | 36.24     | 56.76      | 56.76     | 65.43      | 65.43     | 75.53      | 67.07     | 101.71     | 90.63     |
| 24        | Uttar Pradesh     | 3862.60    | 3852.60   | 6050.02    | 6034.33   | 6973.57    | 6179.65   | 8050.34    | 7148.74   | 10840.04   | 9659.47   |
| 25        | Uttarakhand       | 203.26     | 203.26    | 318.37     | 318.37    | 366.97     | 346.77    | 423.64     | 376.19    | 570.44     | 508.31    |
| 26        | West Bengal       | 1532.21    | 1470.86   | 2399.91    | 2319.48   | 2766.26    | 2369.18   | 3193.39    | 2740.69   | 4300.01    | 3703.25   |
|           | Total             | 21624.46   | 21510.46  | 33870.52   | 33218.21  | 39040.97   | 36295.90  | 45069.16   | 39762.32  | 60687.13   | 52461.65  |

## Annexure referred to in reply to part (d) and (e) of the Lok Sabha Untsarred Question No. 1530 answered on 07.12.2021

## Allocation and release of Fifteenth Finance Commission Grants to the States for Rural Local Bodies

(Rs. in crore)

| Sl. No.   | States            | 2020-21    | 2020-21   | 2021-22    | 2021-22   | 2022-23    | 2023-24    | 2024-25    | 2025-26    |
|-----------|-------------------|------------|-----------|------------|-----------|------------|------------|------------|------------|
| Sl. No.   | States            | Allocation | Release   | Allocation | Release   | Allocation | Allocation | Allocation | Allocation |
| 1         | Andhra Pradesh    | 2625.00    | 2625.00   | 1939.00    | 969.50    | 2010.00    | 2031.00    | 2152.00    | 2099.00    |
| 2         | Arunachal Pradesh | 231.00     | 231.00    | 170.00     | 85.00     | 177.00     | 179.00     | 189.00     | 185.00     |
| 3         | Assam             | 1604.00    | 1604.00   | 1186.00    | 593.00    | 1228.00    | 1241.00    | 1315.00    | 1283.00    |
| 4         | Bihar             | 5018.00    | 5018.00   | 3709.00    | 1854.50   | 3842.00    | 3884.00    | 4114.00    | 4012.00    |
| 5         | Chhattisgarh      | 1454.00    | 1454.00   | 1075.00    | 537.50    | 1114.00    | 1125.00    | 1192.00    | 1163.00    |
| 6         | Goa               | 75.00      | 75.00     | 55.00      | 0.00      | 57.00      | 58.00      | 62.00      | 61.00      |
| 7         | Gujarat           | 3195.00    | 3195.00   | 2362.00    | 1181.00   | 2446.00    | 2473.00    | 2619.00    | 2555.00    |
| 8         | Haryana           | 1264.00    | 1264.00   | 935.00     | 467.50    | 968.00     | 979.00     | 1036.00    | 1011.00    |
| 9         | Himachal Pradesh  | 429.00     | 429.00    | 317.00     | 158.50    | 329.00     | 332.00     | 352.00     | 343.00     |
| 10        | Jharkhand         | 1689.00    | 1689.00   | 1249.00    | 624.50    | 1293.00    | 1307.00    | 1385.00    | 1351.00    |
| 11        | Karnataka         | 3217.00    | 3217.00   | 2377.00    | 1188.50   | 2463.00    | 2490.00    | 2637.00    | 2572.00    |
| 12        | Kerala            | 1628.00    | 1628.00   | 1203.00    | 601.50    | 1246.00    | 1260.00    | 1334.00    | 1301.00    |
| 13        | Madhya Pradesh    | 3984.00    | 3984.00   | 2944.00    | 1472.00   | 3050.00    | 3083.00    | 3265.00    | 3185.00    |
| 14        | Maharashtra       | 5827.00    | 5827.00   | 4307.00    | 2153.50   | 4461.00    | 4510.00    | 4776.00    | 4659.00    |
| 15        | Manipur           | 177.00     | 177.00    | 131.00     | 65.50     | 135.00     | 137.00     | 145.00     | 142.00     |
| 16        | Meghalaya         | 182.00     | 91.00     | 135.00     | 0.00      | 140.00     | 141.00     | 149.00     | 146.00     |
| 17        | Mizoram           | 93.00      | 93.00     | 69.00      | 34.50     | 71.00      | 72.00      | 76.00      | 74.00      |
| 18        | Nagaland          | 125.00     | 125.00    | 92.00      | 18.40     | 96.00      | 97.00      | 102.00     | 99.00      |
| 19        | Odisha            | 2258.00    | 2258.00   | 1669.00    | 834.50    | 1728.00    | 1747.00    | 1851.00    | 1805.00    |
| 20        | Punjab            | 1388.00    | 1388.00   | 1026.00    | 513.00    | 1062.00    | 1074.00    | 1138.00    | 1110.00    |
| 21        | Rajasthan         | 3862.00    | 3862.00   | 2854.00    | 1427.00   | 2957.00    | 2989.00    | 3166.00    | 3087.00    |
| 22        | Sikkim            | 42.00      | 42.00     | 31.00      | 15.50     | 33.00      | 33.00      | 35.00      | 33.00      |
| 23        | Tamil Nadu        | 3607.00    | 3607.00   | 2666.00    | 1333.00   | 2761.00    | 2791.00    | 2957.00    | 2884.00    |
| 24        | Telangana         | 1847.00    | 1847.00   | 1365.00    | 682.50    | 1415.00    | 1430.00    | 1514.00    | 1477.00    |
| 25        | Tripura           | 191.00     | 191.00    | 141.00     | 70.50     | 147.00     | 148.00     | 157.00     | 153.00     |
| 26        | Uttar Pradesh     | 9752.00    | 9752.00   | 7208.00    | 3604.00   | 7466.00    | 7547.00    | 7994.00    | 7797.00    |
| 27        | Uttarakhand       | 574.00     | 574.00    | 425.00     | 212.50    | 440.00     | 445.00     | 471.00     | 458.00     |
| 28        | West Bengal       | 4412.00    | 4412.00   | 3261.00    | 1630.50   | 3378.00    | 3415.00    | 3617.00    | 3528.00    |
|           | Total             | 60750.00   | 60659.00  | 44901.00   | 22327.90  | 46513.00   | 47018.00   | 49800.00   | 48573.00   |