Guidelines to Panchayat Raj Institutions on XIIIth Finance Commission Grants

Government Of India have issued certain guidelines for release and utilization of XIIIth Finance Commission Grants.  The same were communicated, In addition to the Government Of India Guidelines, the Government of Andhra Pradesh have formulated a set of guidelines to Panchayat Raj Institutions on 13th F.C. Grants  for apportionment of grants among the Panchayat Raj Institutions and utilization of various components at Gram Panchayat, Mandal Parishad and Zilla Parishad level during the 13th  Finance Commission period i.e. 2013-14 and 2014-15.  Accordingly the following Guidelines are issued.


3.      Release of funds:

The 13th Finance Commission funds will be released in two installments every year i.e. in the month of July and January.

4.      Apportionment of funds among the Panchayat Raj  Instituitions:-

The releases for each financial year will be distributed among Panchayat Raj institutions in the ratio of 70:10:20 for Gram Panchayath, Mandal Praja Parishads and Zilla Praja Parishads respectively.  These   institutions   shall   receive   the   grants   on population basis. The amounts allocated to each District will be distributed on per capita basis.


        The funds have to be utilized on the following by the Panchayat Raj Institutions

6.      Gram Panchayat

  • Maintenance of CPWS schemes & PWS schemes
  • Maintenance of Sanitation.
  • Maintenance of Internal Roads.
  • Maintenance of Street lighting.
  • Solid Waste Management.
  • Maintenance of GP building.
  • e- Panchayat
  • Sanitation in schools/ Anganwadis.

  7.      Mandal Parishad

  • Maintenance of Hand pumps
  • Maintenance of Mandal Parishad buildings.
  • Maintenance of e- Panchayat cell.
  • Gap filling funds to Schools.
  • Gap filling funds to PHCs and Sub-centres
  • Gap filling funds to veterinary hospitals, PLUs, Gopalamitras
  • Gap filling funds to agricultural demonstrations.

Zilla Parishad

  • Maintenance of CPWS schemes. (the short fall if any shall be made good by levying  charges to concerned Grama Panchayats). The Zilla Parishad shall provide the balance amount, where ever there is a further gap.
  • Maintenance of Zilla Parishad buildings.
  • Maintenance of Rural Roads
  • Promotion of industries including agro and food processing.

Special Area Development grant to the Vth  scheduled Area Gram Panchayats.

This grant should be distributed on proportionate population basis of the Gram Panchayat located in Tribal areas to provide core services like Drinking water, sewerage, Street lighting, Solid Waste Management and Sanitation, as per the guidelines issued by 13th Finance Commission.

Maintenance of audit of Accounts and submission of           Utilisation certificates

The Utilization Certificates should be furnished for the entire financial year by 1st June of the next year. The Audit Report should be furnished to the Commissioner, Panchayat Raj & Rural Employment for a financial year before 31st December of the next calendar year. Action taken report on audit paras should be submitted along with Second Installment proposals. For the funds released to Zilla Praja Parishads and Mandal Praja Parishads, the Chief Executive Officer will be the Nodal Officer to submit Utilization Certificate for the District. For the Gram Panchayats, the District Panchayat Officer will be responsible for submission of utilization Certificates for the District. The Implementing Entities should maintain separate accounts for the 13th Finance Commission grants.

The Gram Panchayat / Mandal Praja Parishad / Zilla Praja Parishad should approve and submit their next year budget before 15th January of proceeding year.

The Commissioner, Panchayat Raj & Rural Employment, Andhra Pradesh, Hyderabad and all the District Collectors / District Panchayat Officers are requested to adhere to the above guidelines.

Guidelines to Panchayat Raj  G.O.Ms.No.378

G.O.Ms.No.378  Dated:13.08.2013

1.From the Director, Ministry of Fin., Govt. of India lr.No. 12(2)FCD/ 2010, Dated.23.09.2010.

2.Govt. Memo. No.25241/Pts.III/A3/2010-1, dt.11.11.2010.

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