Hyderabad: Finance body issues new norms on spending of funds by Gram Panchayats

Hyderabad: The Central Finance Commission has issued fresh guidelines on spending the grants to be released for the Gram Panchayats and asked the GPs to submit fresh development plans.

The CFC has revised the usage pattern of the funds to be given by it and asked the GPs to finalise the new plans by holding Gram Sabhas. However, the GPs are unable to hold Gram Sabhas due to the lockdown. The Central Finance Commission is yet to release the funds to the Gram Panchayats in this financial year. They would be released as soon as the new development plans are submitted.

The GPs had already submitted the development plans to the Centre last year. But the Centre asked the GPs to come up with new plans as per the fresh guidelines of the CFC. As the lockdown is continuing in the State, the executives of the GPs have been holding the meetings and finalizing the development plans. They would be submitted to the portal of the Union Panchayat Raj department.

The Central Finance Commission has granted about Rs 1,847 crores to the state for the rural local bodies in this financial year. As per the 15th FC rules, the funds would be shared between GPs, MPPs and ZPs. The GPs would get about 80 per cent of these funds. They would get about Rs 1,400 crore in this financial year. They would be distributed among the 12,750 GPs as per their population. The funds would be released in two installments. As per the fresh guidelines of the CFC, the funds should be spent on a ratio of 50:25:25 on capital works, sanitation and water supply respectively. Capital works means the GPs could use these funds for construction of roads, and laying of pipelines etc.

As much as 25 per cent of the funds should be used to clean the streets, spray chemicals in the streets, chlorinate drinking water, lift the garbage and others. Other 25 per cent of the grant should be spent on water supply schemes in the villages.

According to official sources, the Centre has revised the rules of the spending of CFC grants in view of misuse of funds by the Sarpanches. The Centre noticed that most of the funds have been spent on capital works while sanitation was ignored.