Introduction
- The Fourteen Finance Commission was constituted (FFC) by the President on January 2,2013 to give recommendations on specified aspects of Centre-State fiscal relations during 2015-2020. The Commission submitted its report to the President on December 15,2014.
- The FFC was ,inter-alia,mandated to recommend measures needed to augment the Consolidated Funds of the state to supplement the resources of the Panchayat and Municipalities based on the recommendations of the respective State Finance Commission(SFCs).
- As per the Constitutiuonal provisions, the explanatory memorandum as to the action taken on the recommendations made by the FFC in its report submitted to the President was laid in the Parliament on February 24, 2015. The Government of India accepted the recommendations of the FFC in respect of the Local bodies.
Grants Recommended
- The FFC has recommended assured transfers to the Local bodies for planning and delivering of basic services smoothly and effectively within the functions assigned to them under relevant legislations. It has taken a view that the measures recommended, including the grants to the local bodies should go towards supporting and strengthening their primary functions to deliver basic services, as improvements in the quality of basic services are likely to lead to an increase in the willingness of the citizens to pay for the services. Therefore, it is advised that all expenditure incurred by Panchayats and Municipalities on basic services within the functions devolved to them under the State laws may be incurred after proper plans are prepared by the Panchayats and Municipalities in accordance with the relevant rules, regulations, processes and procedures applicable in the State.
- The FFC has worked out the total size of the grant to be Rs. 2,87,436 crore for the award period of 2015-20. Of this, grant recommended to Panchayats is Rs. 2,00,292.20 crore and to municipalities is Rs. 87,143.80 crore. The Grant-in-aid recommended is fixed for the Award period. The year-wise and state-wise distribution is given in Annexx-I & II.
Grant Components
The FFC has recommended Grant-in-aid to duly constituted Panchayats (Rural Local Bodies) and Municipalities (Urban Local Bodies) in two parts, namely -
- a Basic Grant, and
- a Performance Grant
In case of Gram Panchayats, 90% of the Grant will be the Basic Grant and 10% will be the Performance Grant. In case of Municipalities, the division between Basic and Performance Grant will be on 80:20 basis. The shares of the States for these Grants are given in Annex-I & II.
Downloads
| Title | Size | Detail |
|---|
| Guidelines for Release & Utilisation of Grant Recommended by the 14th Finance Commission | 4.9 MB |  |
| Status of UC Position of 1st Installment of General Basic Grant under FFC during 2015-16 | 9.25 KB | |
| ULB Wise Delayed Interest Payment under 14th Finance Commission during Year 2016-17 | 57.11 KB | |
| Toolkit for 14th Finance Commission Performance Grant Scheme | 3.56 MB | |
| Sanction Letter for Release of 1st Installment of 2015-16 relating to General Basic Grant | 337.67 KB | |
| Sanction Letter of Penal Interest Against Delay of Release of Fund of 2015-16 | 443.13 KB | |
| Audited Account, Service level Benchmark Data of Naharkatia Town Committee | 2.43 MB | |
| Service level Benchmark Data & Annex-2 of Hailakandi Municipal Board | 576.28 KB | |
| Audited Accounts of Silchar Municipal Board | 13.74 MB | |
| Submission of Information on Audited Accounts of Bihpuria Municipal Board | 4.12 MB | |
| Submission of Data for 14th Finance Commission for the Year 2014-2015 and 2015-2016 | 4.06 MB | |
| Schemes to be implemented | 2.75 MB | |
