EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 705, CUTTACK, FRIDAY, MAY 4, 2018 / BAISAKHA 14, 1940
PANCHAYATI RAJ & DRINKING WATER DEPARTMENT
NOTIFICATION
The 1st May, 2018
No. 8402–17-CFC-20-6117/PR & DW.— In supersession to this Department notification
issued vide No.4940, dated the 14th March, 2018 and incorporating the suggestions
communicated by Ministry of Panchayati Raj, Govt. of India vide No.11011/4/2017-FD., dated the
20th March, 2018, Government have been pleased to formulate the revised detailed procedure for
disbursement of Performance Grant recommended by the 14th Finance Commission from 2017-18
to 2019-20 to the Grama Panchayats of the State for incentivizing better performance. The Grant
shall be utilized by the Grama Panchayats to support and strengthen their primary functions to
enable the GP to augment their resources for better governance.
INTRODUCTION :
The 14th Finance Commission have mandated to recommended measures needed to
augment the consolidated funds of the State to supplement the resources of the Grama
Panchayats based on the recommendation of the 4th State Finance Commission.
The constitutional mandate to strengthen the Grama Panchayats as institution of Local Self
Government is not only limited to the functions for providing basic civic services but also to keep
them within the ambit of accountability and responsibility to utilise public money placed with them.
OBJECTIVE OF THE GRANT :
The primary objective of the Performance Grant is to recognise and to incentivise the
Grama Panchayats to adopt citizen centric governance and service deliveries so as to improve the
quality of life in their respective areas and the Performance Grant equally aims at the following
aspects which would enable and empower the Grama Panchayats in achieving the primary
objective.
1. Sustained improvement in Grama Panchayats to raise own revenues.
2. Making available reliable data on Grama Panchayats including receipt and expenditure
through audited accounts.
2
1. MANDATORY ELIGIBILITY CRITERIA TO ACCESS PERFORMANCE GRANT:
With view to inculcate a performance driven culture in Grama Panchayats, the 14th Finance
Commission have recommended a set of simple and very basic conditions as follows:—
1. Grama Panchayats must submit audited accounts that related to year not earlier than
two years preceding the year in which, the Grama Panchayats seeks to claim the performance
grant. For example, to avail the grants in the financial year 2017-18, the Grama Panchayats have
to prepare and submit audited accounts for the financial year 2015-16 and so on.
2. The Grama Panchayats must show an increase in its own revenue in Financial Year
2015-16 over the preceding FY 2014-15 as reflected in the audited accounts for claim of
Performance Grants for 2017-18 and so on.
3. Preparation of Grama Panchayat Development Plan (GPDP) of the year of performance
grant disbursal and uploading the same in Plan Plus portal.
4. Uploading of sector-wise expenditure of 14th Finance Commission grant of previous year
of performance claim year in the Dashboard/ website of MoPR.
2. EVALUATION CRITERIA TO ACCESS PERFORMANCE GRANT:
The evaluation of those GPs who have satisfied all the above four criteria will be carried out
as per the scoring system given below:
Sl. No.
Criteria (Year to be taken as Financial Year)
Weightage
i
Increase in OSR quantum
Score
> 0 up to 10 %
5
> 10 up to 25 %
10
> 25 up to 50 %
15
> 50 %
20
ii
% of OSR quantum generated w.r.t. FFC Basic Grant amount of previous
financial year to the PG claim year as per audited accounts
Score
> 0 up to 10 %
15
> 10 up to 20 %
20
> 20 up to 30 %
30
> 30 %
40
iii
Open Defecation Free (ODF) status of GP in the previous financial year to
PG claim year
Yes
30
No
0
iv
Immunization in GP in the previous financial year to PG claim year Full
immunization (0-2 year age children)
Yes
10
No
0
v
Total Max. (i+ii+iii+iv) above
100
3
3. DISTRIBUTION OF PERFORMANCE GRANT TO GP:
PG distribution to GPs based on their score shall be made as per details given in the
following table:
4. Any undistributed amount, after the above allocations as per Para. 3 including those of
ineligible GPs, will be redistributed only amongst the GPs scoring 50 or above, proportionately on
the basis of weighted average of the score obtained by the GP with respect to the overall
weightage.
The key underpinnings of performance grant is to enhance the efficiency and effectiveness
of the Grama Panchayats in the delivery of basic civic services and thus this funds are to be
viewed as incentive to drive better service delivery. In this process the Grama Panchayats will be
able to become self-sustaining and bring about an inclusiveness into their service delivery systems
to pave the path for good governance.
Since the 14th Finance Commission recommended the State Government to formulate
State specific guidelines to enable the Grama Panchayats for availing performance grant, all the
aspects attended in creation and maintenance of capital assets, costless development,
transparency and accountability etc., have been taken into consideration and a software
“Panchayat Performance Grant Management System” has been devised which can feed the data
from Panchayat level and upload in the website. These data can be screened at the Block level,
Zilla level and State level to rank the Panchayats and their position at each level so that, the good
performing panchayats can avail the performance grant earmarked by the 14th Finance
Commission in each year i.e., from 2017-18 to 2019-20.
Out of 6798 Grama Panchayats in the State at present, those Grama Panchayats
complying the four eligibility conditions recommended by the 14th Finance Commission and
Ministry of Panchayati Raj (MoPR) will be eligible to receive the performance grant.
The trust based approach adopted by 14th Finance Commission, underlines the
understanding that the local bodies will discharge their statutory functions with all due care. The
preparation and audit of accounts will provide necessary transparency and accountability in this
regard which will enable the Grama Panchayats to strengthen the confidence of the public on
these institutions and the institution of local self Government can successfully fulfill the mandates
entrusted by the Constitution.
The fund disbursement statement to eligible GPs will be annexed here with at Annexure-I
ORDER
Ordered that this notification be published in the Extraordinary issue of the Odisha Gazette.
By Order of the Governor
D.K. SINGH
Principal Secretary to Government
Score
Eligible Quantum of PG
up to 49
50 % of Allocation
50 up to 60
70 % of Allocation
61 up to 70
80 % of Allocation
71 and above
100 % of Allocation
4
Annexure - I
SUMMARY INFORMATION FOR DRAWL OF FOURTEENTH FINANCE COMMISSION PERFORMANCE GRANT
FOR THE YEAR 2017-18
1. Financial Year of Claim: 2017-18
2. Name of the State: Odisha
3. Number of duly constituted Grama Panchayat & due date of next election: 6798 Grama
Panchayats & 2021
4. Allocation of performance Grant to GPs for the FY 2017-18: 196.4 Crore
5. Summary information of Evaluation for Disbursal of FFC Performance Grant for the financial
year 2017-18.
5.1 Eligibility on Mandatory Criteria:
Sl.
No.
Evaluation Criteria’s
Total No. of
GPs duly
Constituted
No. of GPs
qualifying for
the criteria
1
Submission of Audited Accounts for the FY 2016-17
(relating to year not earlier than two years preceding the
year of claim)
6211
4218
2
Shown increase in Own Source of Revenue (OSR) over
the preceding year as reflected in audited accounts
6211
4478
3
Completion of GPDP preparation for FY 2017-18 (relating
to the year of claim)
6211
5212
4
Display of sector-wise FFC expenditure in Dashboard/
website URL of MoPR for the Financial Year 2016-17
(relating to the year preceding the year of claim)
6211
2892
5.1.1 Number of Grama Panchayats satisfying the four Mandatory criteria: 1515
5.2 Eligibility on Mandatory Criteria:
Sl.
No.
Evaluation Criteria
No.of GPs
qualifying for the
criteria
1
Increase in OSR Quantum (as per Sl. 2 table at 5.1)
>0 up to 10%
>10 up to 25%
>25 up to 50%
> 50%
341
426
337
411
2
% of OSR quantum generated w.r.t. FFC Basic Grant amount of
previous financial year to the PG claim year as per audited
accounts >0 up to 10%
>10 up to 20%
>20 up to 30%
> 30%
1399
76
17
23
3
Open Defecation Free (ODF) status of GP in the previous financial
year to PG claim year
710
4
Immunization in GP in the previous financial year to PG claim year
Full immunization (0-2 year age children)
1180
5
5.3 Disbursal of Performance Grants to Grama Panchayats:
Sl.
No.
GPs Category
Number
of GPs
Amount of disbursal as per scheme
Total Amount
Initial
Allocation
Redistribution of
undistributed
amount
1
Score upto 49
775
123355460.50
0.00
123355460.50
2
Score 50 to 60
192
43651310.50
366356835.05
410008145.55
3
Score 61 to 70
336
84679973.60
745261625.70
829941599.30
4
Score 71 and above
212
66296333.00
533768461.65
600694794.65
Total
1515
318613077.60
1645386922.40
1964000000.00
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10
Ex. Gaz. 182-173+100