Lok Sabha Question No. 2247 (UNSTARRED), answered on 2016-03-10
Subject: Allocation of Grants to PRIs
Ministry: PANCHAYATI RAJ
Asked by: CHANDRAKANT BHAURAO KHAIRE, RAMCHARAN BOHARA, BOORA NARSAIAH GOUD, RAM TAHAL CHOUDHARY, P. KARUNAKARAN, C.S. PUTTARAJU

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO.2247

TO BE ANSWERED ON 10.03.2016

## ALLOCATION OF GRANTS TO PRIs

†2247. SHRI CHANDRAKANT KHAIRE: SHRI RAM CHARAN BOHRA: DR. BOORA NARSAIAH GOUD: SHRI RAM TAHAL CHOUDHARY: SHRI P. KARUNAKARAN: SHRI C.S. PUTTA RAJU:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) the salient features of the recommendations made by the Fourteenth Finance Commission for allocation of grants to various States with regard to the Panchayati Raj Institutions (PRIs);
- (b) whether such grants have now been curtailed or any tier of PRIs such as intermediate/district levels has been excluded from such grants as a result of implementation of these recommendations;
- (c) if so, the details and the objectives thereof;
- (d) the reaction of the Government thereto along with the implementation status of the said recommendations for PRIs;
- (e) whether  the  Government  proposes  to  review  these  issues  in  consultation  with  various State Governments and ensure allocation of grants up to Panchayat level and if so, the details thereof; and

(f) whether the Government has any data regarding the total number of PRIs in the country and if so, the details thereof, State/UT-wise?

ANSWER

## MINISTER OF STATE FOR PANCHAYATI RAJ (SHRI NIHAL CHAND)

(a) to (c):  The Fourteenth Finance Commission (FFC) has recommended grants to the tune of Rs. 2,00,292.20 crore for the award period from 2015 to 2020 to Gram Panchayats constituted under  Part  IX  of  the  Constitution,  for  delivering  basic  services,  technical  &  administrative support  towards  operations  and  maintenance,  creation  of  reliable  data  base  of  local  bodies' receipts & expenditure through audited accounts and for improvement of own source revenue of the Gram Panchayats. The Commission has recommended that these grants should go only to

Gram Panchayats as they are directly responsible for delivery of basic services without any share for other levels.

(d) : The recommendations of the FFC have been accepted in toto by the Government and are under implementation. The grants are allocated and released to various States by the Ministry of Finance (Department of Expenditure) in accordance with the guidelines issued by that Ministry. A  statement  showing  State-wise  total  allocation  of  the  grants  to  Rural  Local  Bodies  for  the financial  year  2015-16  and total amount released by Ministry of Finance as on 02.03.2016 is attached as Annexe-I.

(e) : All the three tiers of Panchayats receive funds from various sources including awards of the Union  Finance  Commission,  State  Finance  Commissions  (SFCs),  programmes  of  Union  and State  Governments.  These  Panchayats  are  also  mandated  under  various  laws  to  generate  their own resources through various tax/non-tax measures. Thus the grants received through the Union Finance  Commission  award  are  merely  an  additionality,  as  the  States  also  have  to  provide sufficient  resources to the Panchayats. The Finance Commission have inter  alia also  observed that  'the  State  Governments  are  expected  to  take  care  of  the  needs  of  the  Taluk  and  Zila Panchayats and it is incumbent upon the State Governments to utilise the enhanced fiscal space made available to the States by the FFC on account of higher devolution from 32% to 42% of the Centre's net tax receipts'. The Ministry of Panchayati Raj has already reiterated the recommendations of the FFC to the State Governments for providing adequate funds to other two levels of Panchayats.

(f):  As  per  information  received  from  the  States  there  are  248255  Gram  Panchayats,  6618 Intermediate Panchayats and 618 Zila Panchayats in the country. The number of PRIs keeps on changing  due  to  delimitation  of  boundaries  of  Panchayats  by  the  States/UTs.  The  status  of number of PRIs State/UT-wise is given as Annexe-II.

*****

## (Referred to in  reply to Part (d) of the Lok Sabha Unstarred Question No. 2247 answered on 10.03.2016)

## State-wise Allocation & Release of Rural Local Body Grants during 2015-16  (FFC), as on 02-03-2016

| Sl. No.   |                   | Basic Grant for Rural Local bodies             | Basic Grant for Rural Local bodies   |
|-----------|-------------------|------------------------------------------------|--------------------------------------|
| Sl. No.   | States            | Allocation for the year 2015-16 (Rs. in crore) | Total amount Released (Rs. in crore) |
| 1         | Andhra Pradesh    | 934.34                                         | 928.4091                             |
| 2         | Arunachal Pradesh | 88.52                                          | 44.26                                |
| 3         | Assam             | 584.80                                         | 292.4                                |
| 4         | Bihar             | 2269.18                                        | 1134.59                              |
| 5         | Chhattisgarh      | 566.18                                         | 566.18                               |
| 6         | Goa               | 14.44                                          | 7.22                                 |
| 7         | Gujarat           | 932.25                                         | 932.25                               |
| 8         | Haryana           | 419.28                                         | 419.28                               |
| 9         | Himachal Pradesh  | 195.39                                         | 195.39                               |
| 10        | Jammu &Kashmir    | 373.96                                         | 186.98                               |
| 11        | Jharkhand         | 652.83                                         | 326.42                               |
| 12        | Karnataka         | 1002.85                                        | 501.43                               |
| 13        | Kerala            | 433.76                                         | 216.88                               |
| 14        | Madhya Pradesh    | 1463.61                                        | 1463.61                              |
| 15        | Maharashtra       | 1623.32                                        | 1623.32                              |
| 16        | Manipur           | 22.25                                          | 22.25                                |
| 17        | Meghalaya*        | NA                                             | NA                                   |
| 18        | Mizoram*          | NA                                             | NA                                   |
| 19        | Nagaland*         | NA                                             | NA                                   |
| 20        | Orissa            | 955.52                                         | 955.52                               |
| 21        | Punjab            | 441.70                                         | 220.85                               |
| 22        | Rajasthan         | 1471.95                                        | 1471.95                              |
| 23        | Sikkim            | 16.03                                          | 16.04                                |
| 24        | Tamil Nadu        | 947.65                                         | 947.65                               |
| 25        | Telangana         | 580.34                                         | 580.34                               |
| 26        | Tripura           | 36.24                                          | 36.24                                |
| 27        | Uttar Pradesh     | 3862.60                                        | 1931.3                               |
| 28        | Uttarakhand       | 203.26                                         | 203.26                               |
| 29        | West Bengal       | 1532.21                                        | 735.429                              |
|           |                   | 21624.46                                       | 15959.4481                           |

(Referred to in  reply to Part (f) of the Lok Sabha Unstarred Question No. 2247 answered on 10.03.2016)

## State/UT-wise total number of PRIs (District Panchayats, Block/Intermediate Panchayats and Gram Panchayats)

| Sl. No   | State                   | District Panchayats   | Block/Intermediate Panchayats   | Gram Panchayats   |
|----------|-------------------------|-----------------------|---------------------------------|-------------------|
| 1        | ANDHRA PRADESH          | 13                    | 660                             | 12920             |
| 2        | ASSAM                   | 21                    | 185                             | 2200              |
| 3        | BIHAR                   | 38                    | 534                             | 8392              |
| 4        | CHHATTISGARH            | 27                    | 146                             | 10971             |
| 5        | GUJARAT                 | 33                    | 247                             | 14029             |
| 6        | HARYANA                 | 21                    | 126                             | 6209              |
| 7        | HIMACHAL PRADESH        | 12                    | 78                              | 3226              |
| 8        | JAMMU AND KASHMIR       | 22                    | 320                             | 4198              |
| 9        | JHARKHAND               | 24                    | 263                             | 4402              |
| 10       | KARNATAKA               | 30                    | 176                             | 6011              |
| 11       | KERALA                  | 14                    | 152                             | 941               |
| 12       | MADHYAPRADESH           | 51                    | 313                             | 22824             |
| 13       | MAHARASHTRA             | 34                    | 351                             | 28005             |
| 14       | MANIPUR                 | 4                     | NA                              | 161               |
| 15       | ODISHA                  | 30                    | 314                             | 6211              |
| 16       | PUNJAB                  | 22                    | 146                             | 13028             |
| 17       | RAJASTHAN               | 33                    | 295                             | 9894              |
| 18       | SIKKIM                  | 4                     | NA                              | 176               |
| 19       | TAMIL NADU              | 31                    | 385                             | 12524             |
| 20       | TELANGANA               | 9                     | 438                             | 8695              |
| 21       | TRIPURA                 | 8                     | 35                              | 591               |
| 22       | UTTARAKHAND             | 13                    | 95                              | 7950              |
| 23       | UTTAR PRADESH           | 75                    | 821                             | 59163             |
| 24       | WEST BENGAL             | 19                    | 341                             | 3342              |
| 25       | ARUNACHAL PRADESH       | 20                    | 177                             | 1776              |
| 26       | GOA                     | 2                     | NA                              | 191               |
| 27       | MEGHALAYA               | --                    | --                              | --                |
| 28       | MIZORAM                 | --                    | --                              | --                |
| 29       | NAGALAND                | --                    | --                              | --                |
| 30       | ANDAMAN&NICOBAR ISLANDS | 3                     | 9                               | 70                |
| 31       | CHANDIGARH              | 1                     | 1                               | 12                |
| 32       | DADRA &NAGARHAVELI      | 1                     | --                              | 20                |
| 33       | DAMAN&DIU               | 2                     | --                              | 15                |
| 34       | LAKSHADWEEP             | 1                     | --                              | 10                |
| 35       | PUDUCHERRY              | --                    | 10                              | 98                |
|          | GRAND TOTAL             | 618                   | 6618                            | 248255            |