Hyderabad: Panchayat Raj and Rural Development Minister E Dayakar Rao said since 2019-20 financial year, the State government was releasing matching funds to local bodies which was not being done any other State in the country.
Stating that Chief Minister K Chandrashekhar Rao had taken this decision in 2019-20 financial year, the Minister said these funds are released to Gram Panchayats, Mandal Parishads and Zilla Parishads on the basis of their population. During the financial year 2020-21, the State Government allocated Rs. 1,847 crore, matching the Finance Commission allocations of Rs1,848 crore to Gram Panchayats at the rate of Rs 308 crore per month, he said, replying to questions raised by MLCs P Srinivas Reddy, K Kavitha and others in the State Council on Monday.
The State government released Rs 63.85 lakh in 2020-21 and Rs.2.84 crore to small villages in 2021-22 so far, he said.
In the current financial year, the Central government reduced the funds under the 15th Finance Commission by 25 per cent and allocated only Rs 1,365 crore. Accordingly, the State also allocated Rs 1,365 crore, the Minister said.
From April 2021 to September 2021, the government released Rs. 1,365 crore to Gram Panchayats at the rate of Rs. 227.50 crore every month. The government was releasing and distributing these funds on a per capita grant basis based on population, he informed.
Following the Chief Minister’s decision, 10 per cent of the 15th Finance Commission funds, i.e Rs.136 crore was being given to Zonal Parishads and five per cent i.e, Rs.68 crore to the Zilla Parishads, he added.
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