15th Finance Commission – Guidelines for Panchayati Raj Institutions
1. Chairperson & Members
- Chairperson: Shri N. K. Singh
- Appointment: 27 November 2017
- Recommendation Period: 1 April 2020 – 31 March 2025
- Members: Shaktikant Das, Dr. Anup Singh, Ashok Lahiri, Ramesh Chand
- Secretary: Arvind Mehta
2. Fund Structure
- Fund provided by the Central Government for strengthening rural local self-government institutions.
- Two types of grants:
- Basic / Untied Grant: 50% (can be used flexibly for local needs, excluding salaries and establishment)
- Tied Grant: 50% (restricted to specific purposes)
- Distribution: Available to Zilla Parishad, Panchayat Samiti, and Gram Panchayat levels.
3. Fund Allocation Basis
- Based on 2011 Census population and area of the state.
4. Operational Guidelines
A) Tied Fund
Primary Uses:
- Sanitation & Hygiene:
- Construction of public toilets and urinals
- Covered drains, wash basins on streets
- Compost/organic fertilizer, gobar gas plants
- Solid waste collection and transportation (garbage collection vehicles)
- Drinking Water & Water Conservation:
- Expansion and maintenance of tap water schemes
- Repair of wells, handpumps, and water tanks
- Installation of RO plants
- Roof water harvesting, watershed management
- Recharging of public wells
B) Untied Fund
- Can be used flexibly for local priority needs (excluding salaries and establishment costs)
- Examples of eligible uses:
- Maintenance and repair of village roads and footpaths
- Installation and maintenance of LED/solar street lights
- Construction and maintenance of crematoriums
- Public libraries, children’s parks, playgrounds
- Rural markets (“Rural Haat”)
- Emergency support during natural disasters or epidemics
- Solid waste management
- Preparation of biodiversity registers under Biodiversity Act 2002
- Drainage and waterlogging management
5. Expenditure Prohibited
- Double spending on the same project
- Salaries, honorarium, ceremonies, T.A./D.A.
- Cultural programs, decorations, prizes, inaugurations
- Vehicle purchase
6. Key Points
- 50% of the tied fund must be spent on drinking water and sanitation.
- Untied fund can be used flexibly according to local priorities.
- All funds should be used for rural development and public welfare.