ALLOCATION OF FUNDS DIRECTLY TO PANCHAYATS

New Delhi, September 6: No decision has been taken by the Union Government to allocate funds directly to Gram Panchayats. However, one of the goals set by the Government in the National Common Minimum Programme is to ensure that funds going to the Panchayats are neither delayed nor diverted. In pursuance of this goal, a Committee in the Ministry of Panchayati Raj went into this issue in detail and submitted its report in May, 2005. In pursuance of the recommendations of this Committee, the Ministry of Panchayati Raj supports the position that financial inflows meant for Panchayats should first flow into the Consolidated Fund of State Governments, but should then be speedily transferred direct to the Panchayats "without delay or diversion". Releases of funds on the basis of recommendations of the Twelfth Finance Commission and under the BRGF Programme conform to this pattern of fund flow. This information was given by Shri Mani Shankar Aiyar, Minister of Panchayati Raj, Youth Affairs & Sports and DoNER in the Lok Sabha today in a written reply to a question by Shri Harisinh Chavda.