13 th FCA & Panchayat Rule Government of Orissa Panchayati Raj Department Training-cum-Workshop of Accounts and Computer personnel of DRDA and Blocks

Constitutional Mandate for FCA As per articles 270, 275 and 280 of the constitution, the 13 th Finance Commission has been constitued to perform 3 different types of tasks:- To recommend distribution, between Union and States, of the net proceed of taxes out of divisible pool. To recommend the allocation between the different States of such proceeds, and Thirdly, to recommend measures to supplement the resources of the Panchyats and Municipalities by augmenting the consolidated funds of individual States, taking into account the recommendations of the respective State Finance Commissions (SFCs).

Recommendations 13 th FCA  For augmenting the resources of rural local bodies in terms of award of grant based on certain principles. The grant have two main components. a)Basic Grant – 5 years ( to ) : Cr. b)Performance Grant – 4 years ( to ) : Cr. c)Special Area Basic Grant – 5 years ( to ) : Cr. d)Special Area Performance Grant – 4 years ( to ) : Cr.  A small portion of grants allocated to Special Area covered by the V & VI Schedules and areas exempted from the purview of Part X and XI (A) of the constitution.

General Grant  General Basic Grant  From to  for all GPs  for developmental work  General Performance Grant  based on performance  fulfillment of certain conditionality  From to

 Special area Basic Grant  From to  for Schedule Area  for developmental work  Special Area Performance Grant  From to  based on performance  fulfillment of certain conditionality Special Area Grant

Eligibility for Performance Grant  Put in place Supplement Budget to the Local Bodies.  Audit system as stipulated by CAG and maintenance of accounts of PRIs.  Independent Local Body Ombudsman for complaints  Electronically transferring Local Body Grants (e-Transfer) within five days of receipt from Central Government.  Adequately Empowerment Local Body for levying property tax and other taxes to raise the income of PRIs.

Grants Recommended by 13 th FCA ( in Crore) Components Total 1 General Basic Grant General Performance Special Area Grant Special Area Performance Grant Total

Components of 13 th FCA  Drinking Water Supply  Sewerage, Solid waste management (Rural Sanitation)  Operational Expenses (Maintenance of Accounts, Conducting of Audits, Creation of the Database)

Criteria for distribution of Grants The grants have been distributed to the Panchayats based on their population. Year Upto 5000 (3492 GPs) (2045 GPs) (572 GPs) >10000 (125 GPs) CategoryBasic Perfor manceTotalBasic Perfor manceTotalBasic Perfor manceTotalBasic Perfor manc eTotal Year 1 (10-11) DW Sanitation Year 2 (11-12) DW Sanitation Year 3 (12-13) DW Sanitation In Lakh

Year Upto 5000 (3492 GPs) (2045 GPs) (572 GPs) >10000 (125 GPs) CategoryBasic Perfor manceTotalBasic Perfor manceTotalBasic Perfor manceTotalBasic Perfor manc eTotal Year 4 (13-14) DW Sanitation Year 5 (14-15) DW Sanitation Grand Total DW Sanitation G. Total Criteria for distribution of Grants In Lakh

Criteria for distribution of Grants (As per Population of G.P) (RS. IN LAKH) G. P. 

Year 

Panchayat Rule

Panchayat Rule – 8 formats Order No.PRI-I(i)-61/ PR/ dated  Recommendation of the 11 th Finance Commission and for  exercising proper control,  securing better accountability and  transparency in accounting system of Panchyati Raj Institutions,  Ministry of Panchayati Raj, Government of India have put emphasis in maintenance of accounts by Panchayati Raj Institutions in eight formats prescribed by the Comptroller and Auditor General of India from the current financial year i.e

 State Government adopted eight numbers of formats prescribed by the Comptroller and Auditor General of India.  8 formats are useful and would serve better purpose  for maintaining proper and correct accounting system through computerization.  for effective audit control. Panchayat Rule – 8 formats Order No.PRI-I(i)-61/ PR/ dated

 In exercise of the powers conferred in sub-section-(1) of section, 58 of the Orissa Panchayat Samiti Act, 1959 (Orissa Act 7 of 1960) the State Government do hereby order that in addition to the format prescribed in the Orissa Panchayat Samiti Accounting Procedure Rules, 2002 for maintenance of Accounts, the Panchayat Samities of the State shall maintain their accounts in the eight number of formats appended here to from the financial year Panchayat Rule – 8 formats Order No.PRI-I(i)-61/ PR/ dated

8 formats prescribed by CAG for PRIs FORMAT-IFORMAT-I: Cash Book of Receipt & Expenditure See Rule 100,108,133(1), 133(3), 138,206(e), 206(j), 234,236(b))See Rule FORMAT-IIFORMAT-II: Consolidated Abstract Register (See Rule 100 (2),120,234, 236(b)) FORMAT-IIIFORMAT-III: Reconciliation Register (See Rule 119(2),134|(a), 234,236(b)) FORMAT-IVFORMAT-IV: Receivable and Payable Register (See Rule 43(1), 100 (3),138,234,236(b)) FORMAT-VFORMAT-V : Register of Immovable Property (See Rule 55, 66(3), 71, 234,236(b)) (a) Road(b) Land© Others FORMAT–VIFORMAT–VI: Register of Movable Property (See Rule 55, 66(3), 71,143, 234,236(b) ) FORMAT-VIIFORMAT-VII : Inventory Register (See Rule 32(6), 143, 234,236(b))(See Rule 32(6), 143, 234,236(b)) FORMAT-VIII FORMAT-VIII : Demand Collection & Balance Register (See Rule 118(1),206(f), 234,236(b))

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