Panchayat, Rural Housing and Rural Development Department
index Schemes14th Finance Commission

Fourteenth Finance Commission (FFC)

Under the Fourteenth Finance Commission (FFC) Rs.7771.26 cr. basic grants and Rs. 863.47 cr. Performance grant is to be received for the period of 5 years during the year 2015-20. Performance grant is to be received from the year 2016-17. From among the grant received under the Fourteenth Finance Commission (FFC) the share of basic grant will be 90% and the share of performance grant will be 10%. The said grant is to be allotted directly to the Gram Panchayats (Rural Local Bodies). As specified in the recommendations of the Fourteenth Finance Commission (FFC), the census for the year 2011 will be considered as the base. 90% grant shall be allotted on the basis of the population of the Gram Panchayat and 10% Grant shall be allotted on the basis of the area of the Gram Panchayat.

The Gram Panchayat has to comply the following conditions to receive the Performance Grant.

The Gram Panchayat will have to submit audited accounts that relate to year not earlier than 2 years preceding the year in which the Gram Panchayat seeks to claim the grant. I.e. to receive the grant for the year 2016-17, audited accounts for the year 2014-15 will have to be submitted. The income considered by the local fund audit department while preparing the books of accounts of the Gram Panchayats shall include; own-tax, non-tax, assigned tax, devolution, grant received from the state, grant received from the Finance Commission, Grants for any agency functions assigned by the Union and State Governments.
In the audited accounts submitted for the year, the Panchayat has to show increase in the own-tax income compared to the income of the previous year. This income shall not include any amount or grant received form Central/State Government.
Out of the basic grant allotted to every Gram Panchayat, an amount not exceeding 10% can be utilized for the Administrative expenditure and capital expenditure such as stationery/office maintenance/expenditure related to computers/Establishment expenditure.

The Gram Panchayat can utilize the basic grant (90%) and performance grant received under the Fourteenth Finance Commission for the following purposes/objectives:

Scheme for providing drinking water.
Sanitation.
Solid Waste Management (Purchase of Instruments for disposal of Garbage, to make dumping site and create necessary facilities for classification of solid/ liquid garbage.)
Storm water drainage.
Internal roads.
Pavements/footpath on the main road of village.
Local Haat Bazar.
Missing basic facilities in the Primary Education.
Missing facilities in Anganwadi centers.
To create community facilities to perform duties and task prescribed in the schedule-1 of the Gujarat Panchayat Act.
To Increase durability of assets in convergence with MANREGA scheme.
To increase facilities of E-Grams.
Electrification works (Street light-Priority is to given to LED)
Works of community asset and maintenance of community asset.
Works related to cemeteries and cremation grounds.
The following works cannot be undertaken from the Basic Grant (90%) and Performance Grant received under the Fourteenth Finance Commission:
Temporary type repairing works.
Solar light works.
Stationery/office furniture purchase.
Establishment related expenditure.
Electricity bill related expenditure.
Contingency expenditure works.

A village Development plan shall be made by the Gram Panchayat, wherein following works shall be included as per percentage shown below.

Sr.NoDescription Percentage
1Construction related works60%
2Social Services related works (Education, Child Development, Local market, E-Gram)20%
3Maintenance of community assets and repair works20%