Question : Lack of Adequate Funds to Gram Panchayats

(a) whether the Government has issued any suggestion to the States that Gram Panchayats may give their assets on lease to mobilise revenue and if so, the details thereof along with the reasons therefor;

(b) whether Gram Panchayats are facing hurdles in the way of infrastructure and development releated activities due to the lack of adequate financial resources and delay in issuance of funds by the Government and if so, the details thereof; and

(c) the details of the measures being taken by the Government to ensure adequate and timely availability of funds to Gram Panchayats in the country?

THE MINISTER OF STATE FOR PANCHAYATI RAJ

(SHRI KAPIL MORESHWAR PATIL)

(a) Ministry of Panchayati Raj (MoPR), in its advisory dated 16.08.2021 issued on the subject of ‘Making Gram Sabha Vibrant’, has suggested a sample calendar indicating the month-wise topics to be covered for discussion in the Gram Sabha agenda. In this calendar, one of the subjects suggested for review by the Gram Panchayat is also lease of common property assets for improving panchayat’s Own Sources of Revenue (OSR).


(b) and (c) Article 243G of the Constitution provides for powers, authority and responsibilities of Panchayats wherein it prescribes that the Legislature of a State may, by law, endow panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to-
• the preparation of plans for economic development and social justice;
• the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.
These provisions enable the Panchayats to implement adequate infrastructural and developmental activities with the funds devolved to them. Under the Fourteenth Finance Commission for the award period 2015-2020, Grants of Rs. 2,00,292.20 crore were allocated to the Gram Panchayats in 26 States which was more than three times the corresponding allocation of Thirteenth Finance Commission. Under Fifteenth Finance Commission, Grants to the tune of Rs. 60,750 crore are allocated for the interim period FY 2020-21 and Rs.2,36,805 Crore are allocated for the period FY 2021-26 to Panchayats in all the three tiers and Traditional Local Bodies and Sixth Schedule areas in 28 States. The Grants are in two parts, namely, Basic (Untied) Grants and Tied Grants. The Untied Grants can be utilised for felt needs on 29 subjects enshrined under Schedule XI of the Constitution. The Tied Grants are to be utilised for the national focus areas of Water and Sanitation. Details of the State-wise allocation and release of Fourteenth Finance Commission and Fifteenth Finance Commission Grants are given at Annexure-I and Annexure-II respectively.

Release of grants under the Fifteenth Finance Commission is subject to submission of utilization certificates / grant transfer certificate for the previous instalments drawn along with compliance of other stipulated conditions by the States. Funds under the Rashtriya Gram Swaraj Scheme are released to States on the basis of approved plans, submission of requisite documents viz. Utilization Certificate, Auditor’s Report etc and compliance of other directions as and when issued by Government of India.

***