CHENNAI: The Tamil Nadu government is likely to rely on grants recommended by the 16th Finance Commission to implement the Jal Jeevan Mission (JJM) 2.0, following a change in the Union government's funding mechanism for the scheme.
The issue comes close on the heels of the State raising concerns over the revised funding pattern for the VB-GRAM-G rural employment scheme, which it says will impose an additional financial burden.
The State government recently approved the implementation of JJM 2.0, and a Memorandum of Understanding (MoU) was signed between Chief Minister C Joseph Vijay and Union Jal Shakti Minister CR Patil.
According to official estimates, JJM 2.0 will be implemented at a total cost of Rs 18,123.05 crore over the next five years. The Centre's share has been pegged at Rs 9,025.68 crore, while the State will contribute Rs 9,097.37 crore.
The new funding arrangement for JJM 2.0 could further strain State's finances while implementing major centrally sponsored schemes
However, officials stated that the Union government has informed Tamil Nadu that its share should be met through allocations recommended by the 16th Finance Commission, rather than direct budgetary support from the Union Jal Shakti Ministry.
"As per the MoU, the State has been advised to treat the 16th Finance Commission grants as the Centre's contribution towards JJM 2.0. This means direct departmental funding from the Union government may not be available. The State will have to depend on Finance Commission allocations in addition to its own share," a senior official said.
Officials pointed out that the State is already facing an estimated Rs 5,000-crore additional annual burden under the revised funding pattern for the VB-GRAM-G scheme.
They said the new funding arrangement for JJM 2.0 could further strain the State's finances while implementing major centrally sponsored schemes.