CONTENTS Preface and Acknowledgements vii List of Tables xv Introduction xvii I. Financial System for Local Governance 1 Introduction 1 Emergence of New Panchayati Raj Set-up in 7 Tamil Nadu Devolution of Powers 7 FIRST STATE FINANCE COMMISSION'S (SFC) RECOMMENDATIONS 14 Modifications 15 Unaccepted Recommendations 17 Utilization of SFC Devolution 17 SECOND STATE FINANCE COMMISSION'S 18 RECOMMENDATIONS Analysis of Implementation of Second State 19 Finance Commission's Recommendations and Observations of Third State Finance Commission Revenue dues to Panchayats not settled 20 Release of State Finance Commission's 21 Devolution Fund Unauthorized Diversion of Statutory SFC Grant 22 due to Local Bodies by Government THIRD STATE FINANCE COMMISSION 23 Responsibilities of Three-Tier Panchayats 25 Inadequate Finance and Manpower for 27 Fulfilment of Responsibilities Reduction of Sources of Income 28 Income and Expenditure of Rural Local Bodies 29 Ways and Means to Augment the Resources of 35 Panchayats Conclusion 37 Resource Base of the Panchayats 41 Financial Devolution for Rural Local Bodies 41 (Panchayats) in Tamil Nadu Constitution of India: 73rd Amendment-1991-41 Decentralization of Powers Eleventh Schedule 41 What is done in Reality in Tamil Nadu? 43 Legal Provisions (Constitution and the Tamil 47 Nadu Panchayats Act) Related to Financial Devolution for Panchayats Constitution of State Finance Commission (SFC) Resource Base for Panchayats 48 Income and Expenditure of Village Panchayats54 and Panchayat Unions Details of Revenue of Panchayats 60 Central Finance Commission Grant 80 Accounting System 80 Conclusion 88 III. Role of Panchayats in Rural Development Schemes 90 Planning, Implementation and Financial Management Introduction . 90 State Schemes 91 Centrally Sponsored Schemes 91 Role of Panchayat Governance in Implementation 92 of State and Centrally Sponsored Schemes State Schemes in Detail (Guidelines are given 94 as Annexure-I) Centrally Sponsored Schemes in Detail 105 (Guidelines are given in Separate Annexure-II) Conclusion 113 Conclusion o .,--.. . 114 Annexures-I117 I A: Anaithu Grama Anna Marumalarchi Thittam-117 Detailed Guidelines for the Implementation of the Scheme During 2008-09 I B: Brief Guidelines of Rural Infrastructure Scheme 138 I C:Namakku Naame Thittam-guidelines for the 142 Implementation of the Scheme for the Year 2008-09 ID: Periyar Ninaivu Samathuvapuram-Establishment 152 of Further 29 Samathuvapurams in 2008-09- Detailed Guidelines Annexures-II 161 II A: Guidelines for Indira Awaas Ypjana (IAY) 161 II B: Guidelines for Sampoorna Grameen Rozgar181 Yojana (SGRY) II C: Guidelines for Swarnjayanti Gram Swarozgar 216 Yojana (SGSY) IID: Central Rural Sanitation Programme (Total Sanitation Campaign) 289 IIE: Family Type Biogas Plants Programme 320 Bibliography 328 Index 330