GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Panchayat Raj & Rural Development - The Fifteenth Finance Commission (FFC)
Grants to the Local Bodies – Operational Guidelines for release and utilization
of Grants – Orders – Issued.
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PANCHAYAT RAJ & RURAL DEVELOPMENT (PTS.II) DEPARTMENT

G.O.MS.No. 680 Dated: 02-11-2020

Read the following:

1. Lr.D.O.No.G- 39011/2/2017-FD, Dt.20/02/2020 of the Joint

Secretary, Government of India, Ministry of Panchayat Raj, New
Delhi.
2. Lr.No.s-11011/1/2020-SBM-DDWS, Dt.17/03/2020 of the
Secretary, Government of India, Ministry of Jal Shakti,
Department of drinking Water&Sanitstion, New Delhi & the
Secretary, Government of India, Ministry of Panchayat Raj,
NewDelhi.
3. Lr.No.15(2)FC-XV/FCD/2020-25, Dt.01.06.2020 of the
Director(FCD), Government of India, Ministry of Finance,
Department of Expenditure(Finanace Commission Division)
4. Lr.J-11017/08/2020-RE-VII, Dt.12/06/2020 of the Ministry of
Rural Development Mahatma Gandhi NREGA Division,
Government of India.
5. From the Commissioner, PR&RD, Lr.No. 567/CPR&RD/H1/2018,
dt.27-07-2020.

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O R D E R:

The Fifteenth Finance Commission was constituted by the President of

India in 2017 which was mandated to recommend the measures needed to
augment the consolidated funds of the State to supplement the resources of
the Panchayats and Municipalities during the period from 2020-2025.

2. The Ministry of Panchayat Raj, Government of India in the reference

letter 1st read above have requested the State Government to decide the
allocations of both basic and tied grants to the respective tiers of Panchayats/
Rural Local Bodies (RLBs) within the bands of percentage prescribed by the
Fifteenth Finance Commission (FFC).

3. The Ministry of Panchayat Raj, Government of India, in the reference

letter 2nd read above have communicated an advisory for utilization of
Fifteenth Finance Commission (FFC) Grants for rural local bodies for provision
of Drinking Water & Sanitation services and requested that priority may be
given to cover all the Drinking Water and Sanitation related activities.

4. The Ministry of Finance, Department of Expenditure, Government of

India, in the reference letter 3rd read above have communicated the
Operational Guidelines for the implementation of the recommendations on the
local body grants contained in the Chapter 5 of the Fifteenth Finance
Commission (FFC) Report.

5. The Ministry of Rural Development Department, Government of India, in

the reference letter 4th read above have communicated Joint Guidelines for
Convergence of Finance Commission Fund and Mahatma Gandhi National
Rural Employment Guarantee Act(NREGA) for further compliance and
implementation.
(P.T.O.)
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6. The Commissioner, PR&RD in the reference letter 5th read above has
furnished the consolidated draft Operational Guidelines which are prepared in
Consonance with the guidelines communicated by the Government of India for
Utilization of Fifteenth Finance Commission grants by the rural local bodies for
the period from 2020-2025 and requested the Government to issue
comprehensive guidelines for utilization of Fifteenth Finance Commission (FFC)
Grants by the rural local bodies.

7. After careful consideration of the matter, the Government here by issue

following guidelines for implementation in the state.

GUIDELINES TO PRIs ON 15th FINANCE COMMISSION GRANTS

i) The Fifteenth Finance Commission recommended measures

needed to augment the consolidated funds of the State to supplement the
resources of the rural local bodies during 2020-2025. The Government
of India have communicated certain operational Guidelines for utilization
of 15th Finance Commission Grants by rural local bodies for the year
2020-21.

(a) The total Finance Commission Grants released are of two types
and is in 50:50 ratio. Grants will be released in two
installments in every financial Year.

1. Basic (untied) Grant.

2. Tied Grant.

Apportionment of funds among the Panchayat Raj Institutions:-

ii) The grants for each financial year will be distributed among
Panchayat Raj institutions in the ratio of 70:15:15 for Gram
Panchayaths, Mandal Praja Parishads and Zilla Praja Parishads
respectively. These institutions will receive the 90% of grants based
on 2011 census population and 10% of grants based on Area.

(iii) The Commissioner, Panchayat Raj & Rural Development shall

distribute the total allotted grants in fixed ratio to District
Panchayat Officers(70% of total grant), Chief Executive Officers,
ZPP (15% of total grant) and Mandal Praja Parishads (15% of total
grant) through Chief Executive Officers, ZPPs in the state. After
receipt of Grant, the Commissioner, PR&RD shall submit the
Transfer Certificate inPrescribed format to the Government.

iv) The District Panchayat Officers in the State shall distribute 90% of
grants based on 2011 census population and 10% of grants based
on Area among the Gram Panchayats.

v) All Chief Executive Officers, ZPPs in the State shall distribute

90% of grants based on 2011 census population and 10% of
Grants based on area among the Mandal Praja Parishads (15%
share).

PART-I
BASIC GRANTS

vi). The Basic grants (untied) will be released in two installments for
every year and can be used by the local bodies for following location
specific felt needs, except for salary or other establishment
expenditure.
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Gram Panchayats

• Construction and up gradation of internal Roads and drains

• Aforestation of barren lands, Community sites, Avenue Plantation
and Institutional Plantation.
• Maintenance of Street lighting.
• Payment of CC charges including pending bills
• Construction and up gradation of GP building, Community Halls,
Health sub centers, Anganwadi centers, veterinary centers.
• Maintenance of other Gram Panchayat assets
• Up gradation e- Panchayats(purchase of computers and other
peripherals)
• Up gradation of facilities in burial grounds
• Expenditure towards Gram Panchayat Development Plan (GPDP)
Mandal Parishads
• Maintenance of Mandal Parishad buildings/Assets.
• Maintenance of Hand Pumps
• Construction and up gradation of Rural Roads
• Construction and up gradation of Schools, PHCs and Sub-centres,
Veterinary hospitals.
• Aforestation of barren lands, Community sites, Avenue Plantation
Institutional Plantation and procurement of accessories.
• Up gradation of facilities in burial grounds
• Up gradation e- Panchayats (purchase of computers and other
peripherals)

Zilla Parishads

• Operation and Maintenance of CPWS schemes and Multi Village

Schemes
• Maintenance of Zilla Parishad buildings/Assets.
• Construction and up gradation of Rural Roads
• Promotion of industries including agro and food processing.
• Up gradation of facilities in burial grounds
• Up gradation e- Panchayats(purchase of computers and other
peripherals)

PART –II

Tied Grants

vii). Tied grants will be released in two installments and can be

used for following basic services in Gram Panchayats, Mandal
Parishads and Zilla Parishads.

a) Sanitation & maintenance of ODF status,

b) Supply of drinking water, rain water harvesting
and water recycling.

viii). The local bodies shall, as far as possible earmark one half of these
tied grants each to these critical services. However, if any local body
has fully saturated the needs of one category, it can utilize the
funds for the other category.

Sanitation related activities:

• Operation and maintenance of all community assets created for the purpose
of sanitation and Solid and Liquid Waste Management viz., Community
Managed Sanitation Complex, Grey water management system, GOBARDHAN
projects, Faecal Sludge Management projects, soak pits, compost pits.
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• Collection and transportation of waste from households to village level

treatment site and management of compost centers.
• Construction of CommunityManaged Sanitation Complex as per funding
norms of SBM(G) phase II guidelines.
• Construction of community compost pits, community soak pits/ grey water
management system as per funding norms of SBM(G) phase II guidelines.
• Transportation of plastic waste from village storage to Plastic Waste
Management Unit at Block level.
• Retrofitting of toilets at community level group of toilets.
• Construction of drainage channels.
• Equipment for cleaning the waste management premises and safety gears
for workers which may include masks/gumboots etc.
• Provision of community level segregation bins at public places (two bins
system).
• Menstrual waste Management at appropriate place preferable at collection
Centre which may include incinerator models approved by CPCB/SPCB.
• Scaling up of GOBAR-Dhan projects(minimum 10 per Block) as per norms
under New National Biogas and Organic Manure Programme (NNBOMP) of
Ministry of New and Renewable Energy.
• Remuneration/wages of Sanitation workers including green ambassadors.

ix) Drinking water related activities

• Augmentation of existing water sources of drinking water viz., bore well

recharge, rain water harvesting viz., check dams, rehabilitation of water bodies,
water shed and spring shed management etc,.
• Providing water in institutions like schools, Anganwadi centers, Health
Centers.
• Retrofitting of existing water supply schemes/systems to improve service
delivery for whole design period.
• Bringing water from nearby surface source, bore well, in village distribution
network, overhead tank (ESR), sump, washing & bathing place for people
having small houses,
• Cattle troughs etc.
• Grey water treatment and its reuse viz., stabilization pond and associated
infrastructure.
• Operation and maintenance of drinking water supply and grey water
management system.
• Besides of the above Zilla Parishads shall cover Operation and Maintenance
of CPWS schemes along with above activities.
• Remuneration to the staff engaged for drinking water scheme.

x). Before release of Tied grants, the following points shall be assessed.

• Status & Maintenance of Open Defecation free local body

• Supply of drinking water, rain water harvesting and water recycling
• Uploading of GPDP and details about utilisation 15 th F.C funds on the
website.
• Any other condition which may deem fit in connection with the stated
objectives of the tied grant .

xi). Maintenance of audit of Accounts and submission of Utilization

certificates

1. The Audit Report on the Accounts of Gram Panchayats (by DPOs) and
Zilla Praja Parishads and Mandal Parishads (by Chief Executive Officers,
ZPPs) should furnish to the Commissioner, PR&RD every year before 31
st December.
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2. The Chief Executive Officers, ZPPs and District Panchayat Officers

are responsible for proper utilization of 15 th Finance Commission grants
by the Zilla Praja Parishads, Mandal Praja Parishads and Gram
Panchayats and for submission of consolidated utilization Certificate for
the District.

3. The Commissioner, PR&RD shall monitor the implementation of

the scheme of audit of accounts and expenditure incurred by Rural Local
Bodies.

Xii) Convergence: The Gram Panchayats can converge Finance Commission

funds with Mahatma Gandhi NREGA for taking up other works which are
permissible under Mahatma Gandhi NREGA and Finance Commission
guidelines. Works, which are permitted for convergence, shall be initiated
immediately and completed within the financial year 2020-21.

8. The Commissioner, Panchayat Raj and Rural Development, all the

District Collectors, District Panchayat officers, Chief Executive Officers, Zilla
Praza Parishad in the State are requested to adhere to these guidelines.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

GOPAL KRISHNA DWIVEDI

PRINCIPAL SECRETARY TO GOVERNMENT

To
The Commissioner, Panchayat Raj and Rural Development
Andhra Pradesh, Tadepalli, Guntur district.
All the District Collectors in the State.
All District Panchayat Officers in the State.
The Engineer in Chief [Panchayat Raj], AP, Amaravati.
The Chief Engineer ( Admn.) O/o the Engineer in Chief, [Rural Water Supply],
Andhra Pradesh, Amaravati.
The Director, State Audit, Andhra Pradesh, Amaravati.
The Director, Treasuries and Accounts, Andhra Pradesh, Amaravati.
The Accountant General, Andhra Pradesh, Amaravati.
Copy to:
The PA to Hon’ble CS to Government, A.P.Secretariat, Velagapudi.
The Director (FDC), Ministry of Finance,
Department of Expenditure, Government of India, 11th Block,
5th Floor, CGO Complex, Lodhi Road, New Delhi 110 003.
The Finance (FC) Department.
The Panchayat Raj & Rural Development (Progs./RWS/Mdl.I) Department.
The P.S. to Prl. Secretary to Government.
Sf/Sc.

//FORWARDED :: BY ORDER//

SECTION OFFICER