Lok Sabha Question No. 1067 (UNSTARRED), answered on 2022-12-13
Subject: Misappropriation of Panchayat Funds
Ministry: PANCHAYATI RAJ
Asked by: Ramdas Chandrabhanji Tadas

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO. 1067 ANSWERED ON 13.12.2022

## MISAPPROPRIATION OF PANCHAYAT FUNDS

## †1067. SHRI RAMDAS C. TADAS:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) whether the Government has received any complaints regarding misappropriation of Panchayat funds in various States/UTs;
- (b) if so, the details thereof, State/UT-wise including Maharashtra and Jharkhand;
- (c) the  funds  allocated  to  Panchayats  during  the  last  three  years  and  the  current  year, State/UT-wise; and
- (d) the  details  of  steps  taken/being  taken  by  the  Government  to  ensure  balanced development of all villages through Panchayati Raj Institutions in the country?

## ANSWER

## THE MINISTER OF STATE FOR PANCHAYATI RAJ

## (SHRI KAPIL MORESHWAR PATIL)

(a)& (b) The State/UTs- wise number of complaints on misappropriation of Panchayat Funds including from the States of Maharashtra and Jharkhand as received in the year 2022 (as on 08.12.2022) is at Annexure-I.

(c) The year-wise funds allocated/released under the (i) Fourteenth and Fifteenth Finance Commissions,  (ii)  the  scheme  of  Incentivization  of  Panchayats  (IoP)  under  which  awards including financial incentives are given to the best performing Panchayats in recognition of their good work for improving delivery of services and public goods and (iii) the Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) for capacity building of the elected representatives and their functionaries of the Panchayati Raj Institutions (PRIs) during the last three years and current year are at Annexure-II, Annexure-III and Annexure-IV respectively.

(d) Article  243G  of  the  Constitution  envisages  the  Panchayats  as  institutions  of  self government and provides that the legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of  self-government  and  for  the  preparation  of  plans  and  implementation  of  schemes  for economic development and social justice. Accordingly, the Constitution has empowered the States to take steps for devolution of powers, authority, and responsibilities of Panchayati Raj Institutions  which  are  essential  for  their  effective  functioning  and  success.  In  this  regard, Ministry  of  Panchayati  Raj  reviews  their  performance  from  time  to  time,  through  studies, review  meetings,  field  visits,  video  conferencing,  Information  Technology  applications, Common Review Missions etc.

In addition to devolution of financial resources through Central Finance Commission grants to the  Panchayats,  the  Ministry  of  Panchayati  Raj,  under  its  Centrally  Sponsored  Scheme  of Rashtriya Gram Swaraj Abhiyan, builds the capacity of Panchayati Raj Institutions to enable them to prepare effective Panchayat Development Plans by way  of convergence of resources from various schemes and programmes of both Central and State Governments and utilising Central Finance Commission  Grants  for overall socio-economic development  of the Panchayats with overriding priorities of achieving Sustainable Development Goals.

Annexure-I

Annexure referred to in reply to part (a) & (b) of the Lok Sabha Unstarred Question No. 1067 answered on 13.12.2022 regarding Misappropriation of Panchayat Funds.

State/UT-wise Number of Complaints on Misappropriation of Panchayat Funds in the year 2022 (as on 08.12.2022)

|   Sl. No. | State            |   Number of Complaints |
|-----------|------------------|------------------------|
|         1 | Andhra Pradesh   |                      1 |
|         2 | Assam            |                      0 |
|         3 | Bihar            |                     23 |
|         4 | Chhattisgarh     |                      7 |
|         5 | Gujarat          |                      4 |
|         6 | Haryana          |                      7 |
|         7 | Himachal Pradesh |                      1 |
|         8 | J&K              |                      1 |
|         9 | Jharkhand        |                      1 |
|        10 | Karnataka        |                      1 |
|        11 | Madhya Pradesh   |                     11 |
|        12 | Maharashtra      |                      5 |
|        13 | Punjab           |                      2 |
|        14 | Rajasthan        |                      7 |
|        15 | Odisha           |                      0 |
|        16 | Tamil Nadu       |                      3 |
|        17 | Uttar Pradesh    |                     22 |
|        18 | Uttarakhand      |                      0 |
|        19 | West Bengal      |                      0 |

Annexure-II

Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1067 answered on 13.12.2022 regarding Misappropriation of Panchayat Funds.

State-wise details of funds allocated to the Panchayats under Finance Commission during the last three year and current year.

(Rs in Crore)

| Sl. No.   | States            | Fourteenth Finance Commission (XIV FC)   | Fifteenth Finance Commission (XV FC)   | Fifteenth Finance Commission (XV FC)   | Fifteenth Finance Commission (XV FC)   |
|-----------|-------------------|------------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
|           |                   | 2019-20                                  | 2020-21                                | 2021-22                                | 2022-23                                |
| 1.        | Andhra Pradesh    | 2622.13                                  | 2625.00                                | 1939.00                                | 2010.00                                |
| 2         | Arunachal Pradesh | 248.44                                   | 231.00                                 | 170.00                                 | 177.00                                 |
| 3         | Assam             | 1641.19                                  | 1604.00                                | 1186.00                                | 1228.00                                |
| 4         | Bihar             | 6368.25                                  | 5018.00                                | 3709.00                                | 3842.00                                |
| 5         | Chhattisgarh      | 1588.94                                  | 1454.00                                | 1075.00                                | 1114.00                                |
| 6         | Goa               | 40.53                                    | 75.00                                  | 55.00                                  | 57.00                                  |
| 7         | Gujarat           | 2616.26                                  | 3195.00                                | 2362.00                                | 2446.00                                |
| 8         | Haryana           | 1176.68                                  | 1264.00                                | 935.00                                 | 968.00                                 |
| 9         | Himachal Pradesh  | 548.36                                   | 429.00                                 | 317.00                                 | 329.00                                 |
| 10        | Jammu &Kashmir*   | 1049.49                                  | -                                      | -                                      | -                                      |
| 11        | Jharkhand         | 1832.12                                  | 1689.00                                | 1249.00                                | 1293.00                                |
| 12        | Karnataka         | 2814.39                                  | 3217.00                                | 2377.00                                | 2463.00                                |
| 13        | Kerala            | 1217.3                                   | 1628.00                                | 1203.00                                | 1246.00                                |
| 14        | Madhya Pradesh    | 4107.48                                  | 3984.00                                | 2944.00                                | 3050.00                                |
| 15        | Maharashtra       | 4555.7                                   | 5827.00                                | 4307.00                                | 4461.00                                |
| 16        | Manipur           | 62.43                                    | 177.00                                 | 131.00                                 | 135.00                                 |
| 17        | Meghalaya#        | -                                        | 182.00                                 | 135.00                                 | 140.00                                 |
| 18        | Mizoram#          | -                                        | 93.00                                  | 69.00                                  | 71.00                                  |
| 19        | Nagaland#         | -                                        | 125.00                                 | 92.00                                  | 96.00                                  |
| 20        | Odisha            | 2681.59                                  | 2258.00                                | 1669.00                                | 1728.00                                |
| 21        | Punjab            | 1239.58                                  | 1388.00                                | 1026.00                                | 1062.00                                |
| 22        | Rajasthan         | 4130.9                                   | 3862.00                                | 2854.00                                | 2957.00                                |
| 23        | Sikkim            | 44.99                                    | 42.00                                  | 31.00                                  | 33.00                                  |
| 24        | Tamil Nadu        | 2659.5                                   | 3607.00                                | 2666.00                                | 2761.00                                |
| 25        | Telangana         | 1628.68                                  | 1847.00                                | 1365.00                                | 1415.00                                |
| 26        | Tripura           | 101.71                                   | 191.00                                 | 141.00                                 | 147.00                                 |
| 27        | Uttar Pradesh     | 10840.04                                 | 9752.00                                | 7208.00                                | 7466.00                                |
| 28        | Uttarakhand       | 570.44                                   | 574.00                                 | 425.00                                 | 440.00                                 |
| 29        | West Bengal       | 4300.01                                  | 4412.00                                | 3261.00                                | 3378.00                                |
| Total     |                   | 60687.13                                 | 60750.00                               | 44901.00                               | 46513.00                               |

Annexure-III

Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1067 answered on 13.12. 2022 regarding Misappropriation of Panchayat Funds.

## State/UT-wise Funds Released Under Incentivisation of Panchayats Scheme during the Last Three Years and Current Year

(Rs. in crore)

| Sl. No.   | States/ UTs              |   2019-20 |   2020-21 |   2021-22 | 2022-23 (as on 08-12-22)   |
|-----------|--------------------------|-----------|-----------|-----------|----------------------------|
| 1.        | Andaman &Nicobar Islands |      0.05 |      0.18 |      0    | 0.36                       |
| 2.        | Andhra Pradesh           |      2.2  |      2.47 |      2.95 | 2.59                       |
| 3.        | Arunachal Pradesh        |      0.5  |      0.15 |      0.85 | 0.85                       |
| 4.        | Assam                    |      0.97 |      1.59 |      1.62 | 1.59                       |
| 5.        | Bihar                    |      0.25 |      2.76 |      2.27 | 2.3                        |
| 6.        | Chhattisgarh             |      1.55 |      1.54 |      1.6  | 1.69                       |
| 7.        | Dadra &Nagar Haveli      |      0    |      0.7  |      0.35 | 0.25                       |
| 8.        | Daman &Diu               |      0    |      0.35 |      0.32 |                            |
| 9.        | Goa                      |      0    |      0    |      0    | 0                          |
| 10.       | Gujarat                  |      0.05 |      3.62 |      1.88 | 1.87                       |
| 11.       | Haryana                  |      0.05 |      2.86 |      1.48 | 0.58                       |
| 12.       | Himachal Pradesh         |      1.33 |      1.54 |      1.41 | 1.44                       |
| 13.       | Jammu &Kashmir           |      0.05 |      0.6  |      0.36 | 1.4                        |
| 14.       | Jharkhand                |      1.36 |      1.52 |      1.59 | 1.59                       |
| 15.       | Karnataka                |      1.63 |      0.1  |      1.87 | 2.13                       |
| 16.       | Kerala                   |      0.25 |      1.75 |      2.1  | 2.65                       |
| 17.       | Ladakh                   |      0    |      0    |      0    | 0.43                       |
| 18.       | Lakshadweep              |      0    |      0.05 |      0.3  | 0                          |
| 19.       | Madhya Pradesh           |      2.35 |      0.05 |      5.13 | 2.72                       |
| 20.       | Maharashtra              |      0    |      2.31 |      4.6  | 2.71                       |
| 21.       | Manipur                  |      0.78 |      0.25 |      1.76 | 0.94                       |
| 22.       | Meghalaya                |      0.05 |      0    |      0.05 | 0.05                       |
| 23.       | Mizoram                  |      0    |      0    |      0.25 | 0.3                        |
| 24.       | Nagaland                 |      0    |      0.26 |      0.36 | 0                          |
| 25.       | Odisha                   |      0    |      2.97 |      1.87 | 2.89                       |
| 26.       | Punjab                   |      1.62 |      1.64 |      1.74 | 1.68                       |
| 27.       | Rajasthan                |      1.34 |      1.83 |      1.72 | 1.88                       |
| 28.       | Sikkim                   |      0.81 |      0.86 |      0.86 | 0.86                       |
| 29.       | Tamil Nadu               |      0.05 |      3.56 |      1.87 | 1.8                        |
| 30.       | Telangana                |      0.05 |      2.91 |      1.68 | 2.46                       |
| 31.       | Tripura                  |      1.06 |      1.36 |      1.43 | 1.4                        |
| 32.       | Uttarakhand              |      0.05 |      2.96 |      1.49 | 1.51                       |
| 33.       | Uttar Pradesh            |      4.7  |      4.79 |      4.78 | 3.83                       |
| 34.       | West Bengal              |      1.6  |      1.65 |      1.95 | 2.75                       |
| Total     | Total                    |     24.7  |     49.18 |     52.49 | 49.5                       |

Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1067 answered on 13.12.2022 regarding Misappropriation of Panchayat Funds.

State/UT-wise Funds Released Under RGSA Scheme during the Last Three Years and Current Year

| Sl. No.   | State/ UT                | 2019-20   | 2020-21   | 2021-22   | 2022-23 (as on 08.12.2022)   |
|-----------|--------------------------|-----------|-----------|-----------|------------------------------|
| 1         | Andaman &Nicobar Islands | 0.00      | 0.00      | 0.00      | 0.00                         |
| 2         | Andhra Pradesh           | 0.00      | 22.34     | 38.54     | 0.00                         |
| 3         | Arunachal Pradesh        | 39.59     | 0.00      | 30.07     | 108.69                       |
| 4         | Assam                    | 23.22     | 26.12     | 44.04     | 44.34                        |
| 5         | Bihar                    | 0.00      | 0.00      | 63.77     | 0.00                         |
| 6         | Chhattisgarh             | 0.00      | 4.04      | 7.93      | 0.00                         |
| 7         | Dadar &Nagar Haveli      | 0.00      |           |           | 0.00                         |
|           | Daman &Diu               | 0.00      | 0.00      | 0.00      |                              |
| 8         | Goa                      | 0.00      | 0.00      | 0.59      | 0.00                         |
| 9         | Gujarat                  | 0.00      | 0.00      | 0.00      | 0.00                         |
| 10        | Haryana                  | 0.00      | 9.89      | 0.00      | 0.00                         |
| 11        | Himachal Pradesh         | 10.00     | 22.10     | 32.42     | 60.645                       |
| 12        | Jammu &Kashmir           | 6.19      | 25.00     | 40.00     | 0.00                         |
| 13        | Jharkhand                | 0.00      | 2.34      | 7.74      | 0.00                         |
| 14        | Karnataka                | 0.00      | 0.44      | 29.15     | 36                           |
| 15        | Kerala                   | 0.00      | 8.13      | 12.00     | 30.40                        |
| 16        | Ladakh                   | -         | 2.15      | 1.08      | 0.00                         |
| 17        | Lakshdweep               | 0         | 0.00      | 0.00      | 0.00                         |
| 18        | Madhya Pradesh           | 85.48     | 71.42     | 47.11     | 0.00                         |
| 19        | Maharashtra              | 8.44      | 66.76     | 73.34     | 37.84                        |
| 20        | Manipur                  | 4.54      | 3.41      | 2.98      | 0.00                         |
| 21        | Meghalaya                | 2.63      | 3.97      | 0.00      | 0.00                         |
| 22        | Mizoram                  | 0.50      | 21.19     | 5.56      | 14.27                        |
| 23        | Nagaland                 | 3.94      | 3.72      | 4.58      | 0.00                         |
| 24        | Odisha                   | 0.00      | 2.94      | 1.33      | 11.397                       |
| 25        | Puducherry               | 0.00      | 0.00      | 0.00      | 0.00                         |
| 26        | Punjab                   | 0.00      | 13.45     | 10.78     | 34.253                       |
| 27        | Rajasthan                | 0.00      | 12.98     | 17.27     | 0.00                         |
| 28        | Sikkim                   | 5.10      | 4.75      | 1.19      | 6.01                         |
| 29        | Tamil Nadu               | 5.30      | 56.88     | 39.89     | 0.00                         |
| 30        | Telanagana               | 0.00      | 12.00     | 0.00      | 0.00                         |
| 31        | Tripura                  | 0.00      | 2.53      | 4.67      | 0.00                         |
| 32        | Uttar Pradesh            | 169.92    | 32.54     | 83.08     | 0.00                         |
| 33        | Uttarakhand              | 23.79     | 26.75     | 0.00      | 42.48                        |
| 34        | West Bengal              | 44.10     | 33.52     | 15.14     | 0.00                         |
|           | Total                    | 432.74    | 491.34    | 614.25    | 426.325                      |