Punjab Cabinet approves Rs 1,388 cr grant-in-aid to PRIs

Besides, the devolution of funds to all the three tiers of PRIs will be carried out through zila parishads, said the spokesperson. Notably, the grants for rural local bodies are to be distributed as basic and tied grants in the ratio of 50:50, as per recommendations of the 15th Finance Commission.

The Punjab Cabinet on Wednesday approved the release of Rs 1,388 crore as grant-in-aid to the panchayati raj institutions (PRIs), in line with the guidelines of the Fifteenth Finance Commission. In a meeting chaired by Chief Minister Amarinder Singh through video conferencing, the Cabinet also approved distribution of grants among the three tiers of PRIs — 10 per cent for zila parishads, 20 per cent for panchayat samitis and 70 per cent for gram panchayats, a spokesperson of the Chief Minister's Office said.

In absolute terms, out of the total grant-in-aid of Rs 1,388 crore, Rs 971.6 crore would be distributed among gram panchayats, Rs 277.6 crore to panchayat samitis and Rs 138.8 crore to zila parishads. The Cabinet also gave approval to intra tier devolution, to be carried out on the basis of population and area in the ratio of 90:10 as per Fifteenth Finance Commission recommendations, said the spokesperson.

The PRIs will be allotted 90 per cent of the funds on the basis of their population as per the Census 2011, and 10 per cent of the funds on the basis of rural area under their jurisdiction. Besides, the devolution of funds to all the three tiers of PRIs will be carried out through zila parishads, said the spokesperson.

Notably, the grants for rural local bodies are to be distributed as basic and tied grants in the ratio of 50:50, as per recommendations of the 15th Finance Commission. The basic grants are untied and can be used by the local bodies for location-specific needs, except for salary or other establishment expenditure.

The tied grants, on the other hand, can be used for basic services of sanitation and maintenance of the open-defecation-free status and supply of drinking water, rain water harvesting and water recycling..

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