Lok Sabha Question No. 835 (UNSTARRED), answered on 2022-02-07
Subject: Central Finance Commission Fund
Ministry: FINANCE
Asked by: Rajmohan Unnithan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 835 TO BE ANSWERED ON TUESDAY 7 th  FEBRUARY, 2022 [18 MAGHA, 1943 (SAKA)]

## 'Central Finance Commission Fund'

## No. 835.  Shri Rajmohan Unnithan:

Will the Minister of Finance be pleased to state:

- (a) whether there is any proposal to divert the Central Finance Commission Fund (CFC) and allow it to be spent on other sectors and also to district hospitals, taluk hospitals and  CHCs  as  water  conservation  activities  cannot  be  undertaken  in  Kerala  due  to climate issues;
- (b) if  so,  whether the Government will consider this for granting permission to change the CFC and it has also been permitted for the health sector and if not, the reasons therefor;
- (c) whether  the  Gram  Panchayats  will  have  to  pay  a  huge  amount  to  the  Jal  Jeevan Mission Projects and if so, the details thereof;
- (d) whether the Government/ CFC is giving 60 per cent as tied grant to be used for water conservation and drinking water projects and hence they are not in a position to take over other drinking water projects and if so, the details thereof; and
- (e) whether the Government is likely to give permission to pay from the CFC fund for Jal Jeevan Mission Projects, if required and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)&(b) No Sir.

(Contd….from pre-page)

(c) Government of India in partnership with States is implementing Jal Jeevan Mission (JJM) to provide tap water supply to every rural household by 2024. Under JJM, the fund sharing pattern between Centre and States/ UTs, is 100% for Union Territories, 90:10 for North Eastern & Himalayan States including UT of Jammu & Kashmir and 50:50 for other States.  To  bring  in  'sense  of  ownership  and  pride'  among  rural  communities,  community contribution has been mandated, which is 5% of capital cost towards in-village water supply infrastructure in hilly, forested, and in villages having more than 50% SC/ ST population and 10% in the remaining villages.

(d) &(e) The  Fifteenth  Finance  Commission  (FC-XV)  has  recommended  a  total  of ₹2,36,805  crores  for  duly  constituted  Rural  Local  Bodies  (RLBs)  in  28  States  for  the period2021-26 including for the areas which are not required to have Panchayats (Fifth and Sixth Schedule areas and Excluded Areas). Out of the total grant earmarked for Panchayati Raj institutions, 60 percent is earmarked for drinking water supply, rainwater harvesting and sanitation (tied grant) while 40 percent is untied and is to be utilized at the discretion of the Panchayati Raj Institutions for improving basic services.

Rural local bodies may utilise tied grant components in convergence with any  other  scheme,  aided  by  the  Union  Government  for  drinking  water  and  sanitation including  Jal  Jeevan  Mission,  Swachh  Bharat  Mission  Grameen  (SBM-G)  etc.,  to  cover maximum population within the jurisdiction of the concerned local body or to improve the quality of the assets proposed to be constructed for the purpose.

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