Question : Allocation of Funds to Panchayats

(a) the manner and basis of allocation of funds to Gram Panchayats by the Government;

(b) the details of the mechanism being followed in this regard; and

(c) the reasons in case no such mechanism is available with the Ministry?

Answer given by the minister

THE MINISTER OF PANCHAYATI RAJ
(SHRI NARENDRA SINGH TOMAR)

(a) to (c) Under Fourteenth Finance Commission (FFC) award for the period 2015-20, grants to the tune of Rs. 2,00,292.20 crore for the period from 2015 to 2020 have been allocated to Gram Panchayats constituted under Part IX of the Constitution, amounting to an assistance of Rs. 488 per capita per annum at an aggregate level for 26 States. The grants are distributed among the States using the criteria of population and area in the weightage of 90:10 respectively. States further distribute the grants amongst Gram Panchayats on the basis of formula prescribed by the State Finance Commission (SFC) or in its absence using the FFC formula of 90 per cent weight for population and 10 per cent weight for area. Details of grants allocated to 26 States is given at Annexure.


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