Lok Sabha Question No. 2522 (UNSTARRED), answered on 2021-03-09
Subject: Funds to Gram Panchayats
Ministry: PANCHAYATI RAJ
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 2522

ANSWERED ON 09.03.2021

## FUNDS TO GRAM PANCHAYATS

2522. SHRI MAGUNTA SREENIVASULU REDDY:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a)  whether  the  Government  has  any  criteria  for  allocation  of  funds  to  Gram Panchayats in the country;
- (b) if so, the details thereof; State-wise, particularly in the State of Andhra Pradesh; and
- (c) if not, the reasons therefor?

## ANSWER

THE MINISTER OF PANCHAYATI RAJ (SHRI NARENDRA SINGH TOMAR)

- (a)  &  (b)  :  The  Fifteenth  Finance  Commission has  recommended allocation of Rs. 60,750 crore for the period of 2020-21 for Rural Local Bodies (RLBs). Further, for the period  2021-26,  it  has  recommended  allocation  of  Rs.  2,36,805  crore  for  duly constituted RLBs.

The criterion for allocation of funds adopted by the Commission includes:

Inter-se distribution amongst the States is with a weight of 90 percent on population and 10 percent on the areas of the States. All three tiers in the Panchayats shall receive the grants. The inter-se distribution among all the tiers to be done by the State Governments on the basis of the accepted recommendations of the latest State Finance Commission (SFC) and in conformity with the following bands of

- (a)  not  less  than  70  percent  and  not  more  than  85  percent  for  Gram Panchayats,
- (b) not less than 10 percent and not more than 25 percent for Block Panchayats, and
- (c) not less than 5 percent and not more than 15 percent for Zilla Panchayats, subject to the shares adding up to 100 percent.

In States, which have a two-tier system with only village and district panchayats, the allocation will be in the bands of not less than 70 percent and not more than 85 percent for village panchayats and not less than 15 percent and not more than 30 percent for district panchayats. In the event of SFC recommendations not being available, the inter-se distribution within the tiers should be decided by the State Government within the bands indicated above. Once the State-level grants are earmarked  for  each  tier,  the  intra-tier  distribution  among  the  relevant  entities across the State should be on the basis of population and area in the ratio of 90:10 or as per the accepted recommendation of the latest SFC.

In respect of allotment of grants for excluded areas in a State exempted from the purview of Part IX and Part IX -A of the Constitution, the concerned State shall make allocations on the basis of population and area in the ratio of 90:10.

State-wise  allocations  of  Fifteenth  Finance  Commission  Grants  to  the  Rural  Local Bodies including the State of Andhra Pradesh, for the period 2020-21and 2021-26 is furnished at Annexure.

- (c)  In view of above, question does not arise.

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Annexure

(Annexure  referred  to  in  reply  to  parts  (a)  &(b)  of  the  Lok  Sabha  Unstarred Question No. 2522 answered on 09.03.2021)

State-wise, allocation ofFifteenth Finance Commission (XV FC) Grants for Rural Local Bodies for FY 2020-21 and FY 2021-26.

(Rs. in crore)

| Sl No   | State             |   2020-21 |   2021-26 |
|---------|-------------------|-----------|-----------|
| 1       | Andhra Pradesh    |      2625 |     10231 |
| 2       | Arunachal Pradesh |       231 |       900 |
| 3       | Assam             |      1604 |      6253 |
| 4       | Bihar             |      5018 |     19561 |
| 5       | Chhattisgarh      |      1454 |      5669 |
| 6       | Goa               |        75 |       293 |
| 7       | Gujarat           |      3195 |     12455 |
| 8       | Haryana           |      1264 |      4929 |
| 9       | Himachal Pradesh  |       429 |      1673 |
| 10      | Jharkhand         |      1689 |      6585 |
| 11      | Karnataka         |      3217 |     12539 |
| 12      | Kerala            |      1628 |      6344 |
| 13      | Madhya Pradesh    |      3984 |     15527 |
| 14      | Maharashtra       |      5827 |     22713 |
| 15      | Manipur           |       177 |       690 |
| 16      | Meghalaya         |       182 |       711 |
| 17      | Mizoram           |        93 |       362 |
| 18      | Nagaland          |       125 |       486 |
| 19      | Odisha            |      2258 |      8800 |
| 20      | Punjab            |      1388 |      5410 |
| 21      | Rajasthan         |      3862 |     15053 |
| 22      | Sikkim            |        42 |       165 |
| 23      | Tamil Nadu        |      3607 |     14059 |
| 24      | Telangana         |      1847 |      7201 |
| 25      | Tripura           |       191 |       746 |
| 26      | Uttar Pradesh     |      9752 |     38012 |
| 27      | Uttarakhand       |       574 |      2239 |
| 28      | West Bengal       |      4412 |     17199 |
|         | Total             |     60750 |    236805 |

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