The Central Government has kept 50 percent of the funds provided to Gram Panchayats under the 15th Finance Commission in restricted form and has instructed that it should be used mainly for drinking water and sanitation schemes. The funds distributed to Gram Panchayats under the 15th Finance Commission are distributed by the Rural Development Department. The Rural Development Department has issued a government decision on the distribution of the 15th Finance Commission funds on 29 June 2020. The restricted funds from this fund are used for water supply and works under the Swachh Bharat Mission.
The funds in restricted form from the funds provided to Gram Panchayats under the Fifteenth Finance Commission should be used on priority for water supply works at present. Accordingly, the funds in restricted form from the funds provided to Gram Panchayats under the Fifteenth Finance Commission should be used only by the concerned Gram Panchayat for providing 100 percent functional household tap connections (FHTC) till further orders, while following the instructions are followed.
- The villages which have been selected for retrofitting under Jal Jeevan Mission at the level of Executive Engineer, their functional household tap connection works (FHTC) should be completed at the Gram Panchayat level. Administrative approval can be given to the Gram Panchayat to the extent that the Gram Panchayat has administrative powers regarding the use of the Finance Commission funds provided by the Rural Development Department, and the Deputy Engineer, Water Supply and Sanitation Sub-Division, Zilla Parishad will be competent to give technical approval for such works.
- In villages where more works (e.g. source development, exploration of new sources, vertical/gravity channels, construction of water tanks etc.) are to be done and functional household tap connection works (FHTC) are to be done. Such villages should first complete 100 percent house tap connection works from the 15th Finance Commission.