Lok Sabha Question No. 3135 (UNSTARRED), answered on 2016-08-04
Subject: Fund Allocation to the Ministry
Ministry: PANCHAYATI RAJ
Asked by: SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, DHANANJAY BHIMRAO MAHADIK, DHARAM VIRA GANDHI

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA

## UNSTARRED QUESTION NO. 3135

TO BE ANSWERED ON 04.08.2016

## FUND ALLOCATION TO THE MINISTRY

## 3135. SHRIMATI SUPRIYA SULE:

DR.HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI DHARAM VIRA:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) the  amount allocated to the  Ministry during the last three budgets;
- (b) whether  there  has  been  a  successive  reduction  in  the  budgetary  allocations  in  these years;
- (c) if so, the reasons therefor;
- (d) whether  the  Government  consider  that  the  Ministry  needs  no  substantial  funds  to continue  successful implementation of reforms in functioning  of local bodies under 73 rd and 74 th amendments to the Constitution, if so, the details thereof;
- (e) whether the functioning  of  Panchayati  Raj  institutions  have  been  adversely  affected due to the slashed budgetary allocation to the Ministry, if so, the details in this regard, and
- (f) whether the functioning of the Ministry will suffer because of the discontinuation of Backward Regions Grant Allocation, if so, the details thereof and the steps proposed to be taken thereon?

## ANSWER

MINISTER OF STATE OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a) to (c) : The  amount  allocated  to  the  Ministry  during  the  last  three  budgets  is  given below:-

(Rs. in Crore)

| 2014-15                | 2014-15                | 2015-16                 | 2015-16                 | 2016-17                 |
|------------------------|------------------------|-------------------------|-------------------------|-------------------------|
| B.E.                   | R.E.                   | B.E.                    | R.E.                    | BE                      |
| 7000.00                | 3400.00                | 94.00                   | 220.00                  | 768.33                  |
| B.E.: Budget Estimates | B.E.: Budget Estimates | R.E.: Revised Estimates | R.E.: Revised Estimates | R.E.: Revised Estimates |

The budget allocation of the Ministry was reduced from Rs. 7000 crore in 2014-15 to Rs. 94 crore in 2015-16 as the flagship programmes of the Ministry i.e. District component of Backward Regions Grant Fund (BRGF) and the State Component of Rajiv Gandhi Panchayat Sashaktikaran  Abhiyan  (RGPSA)  with  an  allocation  of  Rs.5900  crore  and  Rs.  1050  crore, respectively, were delinked from the central allocation.

(d) to (f): The Gram Panchayats have been allocated a grant of Rs. 2,00,292.2 crore for the period 2015-20 as recommended by the Fourteenth Finance Commission (FFC) for delivery of  basic  services.    From  2015-16,  the  States  also  got  enhanced  share  of  allocation  in  the Central  Taxes  from  32%  to  42%  as  recommended  by  the  FFC.  This  has  provided  much needed flexibility to the States to formulate and implement the development plans as per local requirements  especially  to  address  the  issues  of  backwardness.  With  the  enhanced  flow  of funds to the Gram Panchayats on account of recommendations of the FFC, transfers by the State Governments and State Finance Commissions, the role of Ministry of Panchayati Raj has increased particularly in strengthening the capacities of the Panchayati Raj Institutions, handholding  and  to  promote  good  governance  at  the  grassroots  level.  Accordingly,  the Ministry of Panchayati Raj has been allocated Rs. 768.33 crore during the current financial year of 2016-17 so that the PRIs are enabled to play their role as assigned under 73 rd and 74 th Amendments to the Constitution.

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