Chennai

The state issued a Government Order (GO) allotting Rs 1,157 crore for development of rural local bodies. Devolution of the fund, named capital grant fund, is based on the recommendations of the fifth state finance commission that 10 per cent of the state’s own tax revenue should be allotted for local bodies in the ratio of 56:44 for rural local bodies and urban local bodies respectively. Out of the total fund Rs 665 crore has been released as the first installment for 2022. The fund sharing will be on the ratio of 8:37:55 for district panchayats, panchayat unions and village panchayats, respectively.