Summary of Recommendations Of 16th Finance Commission

Summary of Recommendations

1. We recommend that the States should develop a citizen friendly GIS based property tax IT system for efficient enumeration, assessment and collection of property tax. (paragraph 10.67)
2. We recommend extending the Urban Data platform's capabilities to support ULBs in preparing accounts and financial reports. (paragraph 10.71)
3. The existing arrangements for Technical Guidance and Supervision by the CAG should be continued and strengthened to improve the quality of audit and accounts of local bodies in the States. State Governments should augment the capabilities of their Local Fund Audit Departments (LFADs) by investing in skill development and addressing manpower shortages. (paragraph 10.74)
4. The States should transparently report all transfers to local bodies, including those from the Consolidated Fund of India on the recommendation of the Finance Commission, transfers under centrally sponsored schemes, State Finance Commission grants and other grants from the State Government, separately for ULBs and RLBs in their budgets. These transfers, with all their components, should also be reported in Appendix III of the State Finance Accounts. (paragraph 10.78)
5. In Articles 280(3)(bb) and 280(3)(c), the Constitution directs the FC to make its recommendations on RLBs and ULBs ‘on the basis of the recommendations made by the Finance Commission of the States.’ We recommend that the above‑quoted expression be dropped from the relevant articles through a Constitutional amendment. (paragraph 10.81)
6. We recommend that NITI Aayog may study the functioning of SFCs across States and may publish a compendium of the good practices of the SFCs for the reference of all the States. (paragraph 10.81)
7. We recommend that the grants for RLBs be classified into basic and performance components and the grants for ULBs be classified into basic, performance, urban infrastructure and urbanisation premium components. The aggregate national grant allocation for basic and performance components, put together has been divided in the ratio of 60:40 between RLBs and ULBs. Inter se, the division between basic and performance components is recommended in the ratio of 80:20 for both RLBs and ULBs. (paragraphs 10.83 and 10.84)
8. A total allocation of ₹7,91,493 crore as grants recommended for duly constituted RLBs and ULBs for our award period spanning from 2026‑27 to 2030‑31. (paragraph 10.84)
9. For RLBs, inter‑State distribution is based on a 90:10 ratio of projected rural population (2026) and area, respectively. For ULBs, the States' share has been determined by a 90:10 ratio of projected urban population (2026) and the OSR of ULBs, respectively. (paragraphs 10.86 and 10.89)
10. Within each State, the distribution of grants to duly constituted RLBs of all tiers and to duly constituted ULBs may be undertaken as per the latest accepted recommendations of the respective SFCs. In the absence of the SFC’s recommendations, the tier wise distribution to RLBs may be in conformity with the prescribed percentages. Within a tier of RLB, the distribution may be as per the latest accepted SFC recommendations or in the absence of SFC recommendations based on population and area in the ratio 90:10. For ULBs, the distribution may be as per the latest accepted SFCs recommendations or in the absence of SFC’s recommendations, based on urban population and OSR of ULBs in the 90:10 ratio. (paragraphs 10.87, 10.88 and 10.90)
11. The concerned State Government shall make allocations for exempted areas on par with the Commission’s recommendations with respect to local bodies. (paragraph 10.91)
12. There should be a duly constituted body in place as required in Part IX and Part IX‑A of the Constitution to claim local body grants. This would be the first entry level condition. (paragraph 10.92)
13. Online availability in public domain in year T of audited accounts for all ULBs and RLBs of a State for the T‑2 fiscal year and provisional accounts for the T‑1 year would be the second entry‑level condition to avail local body grants for the year T. (paragraph 10.93)
14. All States must comply with the Constitutional provisions pertaining to the regular constitution of SFCs due as per the Constitutional provision, that is, on expiry of five years of constitution of previous SFC and ensure laying of ATRs in the State legislature within 6 months of submission of the SFC report as a prerequisite to claim their local body grant. This would be the third entry level condition to claim local body grants from the first year of the award period, that is from 2026‑27. (paragraph 10.95)

    Chapter 10

15. The ULB and RLB grant has been divided into basic (80 per cent) and performance (20 per cent) components, with the latter divided into two equal halves: RLB/ULB performance component and State performance component. The basic component may be made available to the States upon fulfilment of the three entry‑level (eligibility) conditions. (paragraph 10.96)
16. For Gram Panchayats to receive the RLB performance component of the RLB grant in fiscal year T, we recommend that Gram Panchayats raise, in year T‑1, minimum 1.025 times its OSR in year T‑2 or 2.5 per cent per annum compounded growth applied over OSR of 2025‑26, whichever is lower, subject to a minimum amount of ₹1200 per household per annum. This will be applicable from the third year of the award period, that is, 2028-29 onwards. (paragraph 10.97)
17. For Block Panchayats, we recommend that they qualify for the RLB performance component of the RLB grant if 75 per cent of Gram Panchayats within their jurisdiction qualify for it. For District Panchayats, we recommend that to qualify for the grant in year T, District Panchayats raise, in year T‑1, minimum 1.025 times its OSR in year T‑2 or 2.5 per cent per annum compounded growth applied over OSR of 2025‑26, whichever is lower. Both of these will be applicable from the third year of the award period, that is, 2028-29 onwards. (paragraph 10.98)
18. For ULBs to qualify for the ULB performance component grant in year T, we recommend it raise in year T‑1, minimum 1.05 times its OSR in year T‑2 or 5 per cent per annum compounded growth applied over OSR of 2025‑26, whichever is lower. This will be applicable from the second year of the award period, that is, 2027-28 onwards. (paragraph 10.99)
19. We recommend that the release of State performance components of the RLB and ULB grants in year T be contingent upon the State transferring from its own resources, in the year T‑1, grants to local bodies amounting to 20 per cent or more of the basic FC grant recommended by us for the year T‑1, starting from the second year. (paragraph 10.100)
20. If any of the performance conditionalities goes unfulfilled, the undisbursed portion of a State's local body performance grants would be disbursed according to the prescribed methodology. (paragraph 10.101)
21. Ministry of Housing and Urban Affairs and Ministry of Panchayati Raj can work towards conceptualising and rolling out a Learning Management System for the functionaries and staff of local bodies so that the functionaries in the local bodies are geared up to meet the present‑day challenges. (paragraph 10.103)
22. 50 per cent of the basic component should be tied and the remaining 50 per cent of the basic component and the entire performance components should remain untied. The tied component should be directed towards ‘Sanitation and Solid Waste Management’ and/or ‘Water Management’. (paragraph 10.107)
23. We recommend that no local body should be allowed to spend more than 20 per cent of the untied allocation on the construction and maintenance of roads. Moreover, the untied grants should not be used for the payment of salaries or other establishment‑related expenditure. (paragraph 10.109)
24. The practice of publishing Service Level Benchmarks should be continued and extended to all ULBs along with introduction of a third‑party assessment or audit mechanism in the system to enhance the reliability of the self‑reported figures. (paragraph 10.110)
25. MoPR and MoHUA should organize regional workshops to familiarize States with the Commission’s recommendations, the operational guidelines, the modalities to be followed for compliance and the process of claiming grants, with special focus on the North-Eastern States. (paragraph 10.111)
26. The total quantum of urbanisation premium, for incentivising rural to urban transitions, to be ₹10,000 crore for the complete award period with a fixed per capita one‑time eligibility amount to be ₹2,000 per person (based on Census 2011 population). The release of urbanisation premium component should be claimed by the State on mergers of peri‑urban villages into adjoining larger ULB with existing population not less than One lakh and formulation of an appropriate Rural to Urban transition policy. (paragraphs 10.113 and 10.114)
27. A Special Infrastructure Component for selected ULBs with the outlay of ₹56,100 crore to facilitate decisive intervention in comprehensive wastewater management in urban growth centres. (paragraph 10.117) Chapter 10
28. The local body grants shall continue to be released in minimum two equal instalments each year, consistent with the existing practice and subject to the fulfilment of the conditions stipulated by the Commission. (paragraph 10.121)
29. The Union Government should ensure that where a set of local bodies within the State meet the conditions, the grants due to them are released without waiting for the rest. (paragraph 10.122)
30. State Governments should ensure the transfer of the grants‑in‑aid to their respective local bodies within ten working days of their receipt from the Union Government. Any delay in this transfer beyond the stipulated ten working days shall obligate the State Governments to release the funds along with interest, calculated at the effective rate of interest applicable to market borrowings/State Development Loans for the preceding financial year. (paragraph 10.123)
31. No further conditions, other than those explicitly indicated in this chapter, should be imposed either by the Union Government or the State Governments for the release of local body grants to the ULBs and RLBs. (paragraph 10.124)

Action Taken on the Recommendations Made by the Sixteenth Finance Commission

GOVERNMENT OF INDIA

Explanatory Memorandum as to the Action Taken
on the Recommendations Made by the
Sixteenth Finance Commission

February, 2026

MINISTRY OF FINANCE
BUDGET DIVISION

EXPLANATORY MEMORANDUM AS TO THE ACTION TAKEN ON THE RECOMMENDATIONS MADE BY THE SIXTEENTH FINANCE COMMISSION IN ITS REPORT SUBMITTED TOTHE PRESIDENT ON NOVEMBER 17, 2025.

1. The Sixteenth Finance Commission (XVI-FC) [Commission, henceforth] was constituted on December 31, 2023, by the President, vide Order number S.O. 5533(E) dated December 31, 2023, along with the Terms of Reference. The Commission was required to submit its report by October 31, 2025. The term of the Commission was extended by one month vide Order number S.O. 4640(E) dated October 10, 2025 permitting the Commission to submit its report by November 30, 2025. The Commission submitted its report to the President on November 17, 2025.
2. The Report of the Commission covering the financial years 2026-27 to 2030-31 commencing from April 1, 2026, together with this Explanatory Memorandum as to the action taken on the recommendations of the Commission, is being laid on the Table of the House, in pursuance of Article 281 of the Constitution. Summary of the main recommendations related to sharing of the Net proceeds of Union taxes between the Centre and the States, grants-inaid of revenue of States under Article 275(1) of the Constitution, financing of disaster management expenditure, grants to local bodies and other recommendations are contained in this Memorandum. This Memorandum also contains the recommendations related to Path to Macro and Fiscal Stability, Reforms in Power Sector, Containing and Making Subsidies Efficient and Public Sector Enterprise Reforms as contained in the Report submitted by the Commission.

   Sharing of Tax Revenues: Vertical Devolution

3. The Commission has recommended to retain the States’ share at 41 per cent of the net proceeds (divisible pool) of Union taxes.
4. The Commission has recommended that to bring in more transparency about the divisible pool and the actual devolution every year, the Union Government disclose the data pertaining to net proceeds as certified by CAG under Article 279.

   The Government has accepted the above recommendations of the Commission.

   Sharing of Tax Revenues: Horizontal Devolution

5. The Commission has determined the inter se share of States, based on population, demographic performance, area, forest, per‑capita‑income‑distance and contribution of the State to Gross Domestic Product (GDP) as criteria. The formula for horizontal devolution and weights assigned to various criteria as recommended by the Commission are given in Table 8.8 of the Report. The shares of States in horizontal devolution for the award period are given in Table 8.9 of the Report.

   The Government has accepted the above recommendations of the Commission.

   Assessment of State Finances and Grants-in-aid of Revenues of States

6. The Commission has not recommended revenue deficit grants to States. The Commission has not recommended any sector‑specific or State‑specific grants. The Commission has observed that State finances in general, and that of tax revenues, committed expenditure and discretionary expenditures in particular shows that there is significant scope of increasing revenues and rationalising expenditure.

   The Government takes note of the above assessment of the Commission.

   Local Body Grants

7. The Commission has recommended that the grants for Rural Local Bodies (RLBs) be classified into basic and performance components and the grants for Urban Local Bodies (ULBs) be classified into basic, performance, special infrastructure and urbanisation premium components. The aggregate national grant allocation for basic and performance components, put together has been divided in the ratio of 60:40 between RLBs and ULBs. The Commission has recommended that the division between basic and performance components be divided in the ratio of 80:20 for both RLBs and ULBs.
8. The Commission has recommended total grants for duly constituted Rural Local Bodies (RLBs) and Urban Local Bodies (ULBs) of ₹ 7,91,493 crore for the period 2026-27 to 2030-31. The Commission has determined the inter-se distribution of grants to RLBs among the states based on a 90:10 ratio of projected rural population (2026) and area. For ULBs, the inter-se States' distribution has been determined by a 90:10 ratio of projected urban population (2026) and the Own Source of Revenue (OSR) of ULBs, respectively.
9. The Commission has recommended that concerned State Government shall make allocations for exempted areas on par with the Commission’s recommendations with respect to local bodies.
10. The Commission has recommended three entry-level conditions for eligibility of States to claim local body grants. Firstly, there should be a duly constituted body in place as required in Part IX and Part IX-A of the Constitution. Secondly, online availability in public domain in year T, provisional accounts of all RLBs and ULBs of the State for the fiscal year T-1 and audited accounts for the fiscal year T-2. Thirdly, the Commission recommended that States should comply with the Constitutional provisions pertaining to the regular constitution of State Finance Commission (SFC) on the expiry of five years from the formation of the previous SFC and ensure laying of the Action Taken Report (ATR) in the State Legislature within 6 months of submission of the SFC report.
11. The Commission has recommended that the local body grants for both RLBs and ULBs be divided into basic (80 per cent) and performance (20 per cent) components, with the latter divided into two equal halves (i) RLB/ULB performance component and (ii) State performance component. The Commission has recommended that the basic component be made available to the States upon fulfilment of the three entry-level (eligibility conditions).
12. The recommendations of the Commission on the eligibility for Gram Panchayats, Block Panchayats, District Panchayats, ULBs to receive Performance Components are detailed in paras 10.97,10.98 and 10.99 of Volume I of the Report. The Commission has recommended the conditions for release of the State Performance Component at para 10.100 of Volume I of the Report. The Commission’s recommendations on the methodology for disbursing the undisbursed portions of a State’s local body performance grants in case of unfulfilled performance conditionalities are provided at para 10.101 of Volume I of the Report.
13. The Commission has recommended that 50 per cent of the basic component should be tied and the remaining 50 per cent of the basic component and the entire performance components should remain untied. The tied component should be directed towards ‘Sanitation and Solid Waste Management’ and/or ‘Water Management’.
14. The Commission recommended that no local body should be allowed to spend more than 20 per cent of the untied allocation on the construction and maintenance of roads. Additionally, it recommended that the untied grants should not be used for the payment of salaries or other establishment‑related expenditure.
15. The Commission recommended that the total quantum of urbanisation premium, for incentivising rural to urban transitions, to be ₹10,000 crore for the complete award period with a fixed per capita one‑time eligibility amount to be ₹2,000 per person (based on Census 2011 population). The Commission recommended that the release of urbanization premium component be claimed by the State on mergers of peri‑urban villages into adjoining larger ULB with existing population not less than One lakh and formulation of an appropriate Rural to Urban transition policy.
16. The Commission recommended a Special Infrastructure Component for selected ULBs with the outlay of ₹56,100 crore to facilitate decisive intervention in comprehensive wastewater management in urban growth centres. The details including eligibility of ULBs for these grants are contained in paras 10.115-10.120 of Volume I of the Report.
17. The Commission recommended that Local Body Grants shall continue to be released in minimum two equal instalments each year, consistent with the existing practice and subject to the fulfilment of the conditions stipulated by the Commission. The Commission further recommended that the Union Government should ensure that where a set of local bodies within the State meet the conditions, the grants due to them are released without waiting for the rest.
18. The Commission recommended that State Governments should ensure the transfer of the grants‑in‑aid to their respective local bodies within ten working days of their receipt from the Union Government. Any delay in this transfer beyond the stipulated ten working days shall obligate the State Governments to release the funds along with interest, calculated at the effective rate of interest applicable to market borrowings/State Development Loans for the preceding financial year. The Commission recommended that no further conditions be imposed either by the Union Government or the State Government for release of local body grants other than those explicitly indicated in the Chapter on Local Body Grants of the Report.
19. The detailed recommendations of the Commission related to local bodies grants are contained in Chapter 10 of Volume I of the Report.

    The Government has accepted the above recommendations of the Commission.

    Financing of Disaster Management

20. The Commission has recommended a total corpus of ₹2,04,401 crore for State Disaster Response Fund (SDRF) and State Disaster Mitigation Fund (SDMF) together, for the award period from 2026‑27 to 2030‑31. The State‑wise allocations recommended by the Commission may be seen in Annexures 11.3 and 11.4 of Volume II of the Report. The Union share in the above corpus is ₹1,55,915.85 crore and the States’ share is ₹48,485.15 crore. The Commission has recommended the cost sharing ratio between the Union and State Governments of 75:25 for Non- Northeastern and Hilly (non‑NEH) states and 90:10 for Northeastern and Hilly (NEH) States.
21. The Commission has recommended the corpus should be divided between the SDRF and SDMF in the ratio of 80:20.The Commission recommended an SDRF allocation of ₹1,63,521 crore and SDMF allocation of ₹40,880 crore. The Commission recommended that there be flexibility for reallocation between Response and Relief and Recovery and Reconstruction within SDRF. Preparedness and Capacity Building has been recommended to be covered under SDMF and National Disaster Mitigation Fund (NDMF).
22. The Commission has recommended that the accumulating balance under SDRF should be limited to the extent that if the unspent balance under SDRF exceeds the sum of past three years annual allocation of SDRF, further releases may be temporarily withheld. The funds withheld will be released if the States’ balances reduce below the threshold of past three years annual allocation.
23. The Commission has recommended a total allocation of ₹79,406 crore for award period 2026-27 to 2030-31 based upon past expenditures for disaster management at the national level for National Disaster Response Fund (NDRF) and National Disaster Mitigation Fund (NDMF). The Commission has recommended the graded cost sharing of central assistance through the NDRF (except Response and Relief) and NDMF should be maintained. The Commission recommended that States are to contribute 10 per cent for assistance up to ₹250 crore, 20 per cent for assistance up to ₹500 crore and 25 per cent for all assistance exceeding ₹500 crore. However, NEH States, the Commission recommended, should contribute 10 per cent of central assistance under NDRF and NDMF.
24. The Commission has recommended that the complete feeding and validation of data in National Disaster Management Information System (NDMIS) portal (for a Financial Year by the May 31 of the succeeding year) will be a necessary condition for States to avail the Disaster Management Grant from the second year of the award period, that is 2027‑28.
25. The detailed recommendations of the Commission related to Financing Disaster Management are contained in Chapter 11 of Volume I of the Report.

    The Government has accepted the above recommendations of the Commission.

    Path to Macro and Fiscal Stability

26. The Commission has recommended that States’ fiscal deficit should be capped at 3 per cent of their respective GSDP (excluding loans under SASCI) and to ensure the stability of the debts of the State Government, this should be strictly enforced in accordance with clause (3) of Article 293 of the Constitution. The Union Government should reduce its fiscal deficit to 3.5 per cent of GDP by the end of the award period. The Commission has recommended that States should completely discontinue the practice of incurring off-budget borrowings bringing all such borrowings on their budgets. It has suggested a format for reporting off-budget borrowings of States and recommended that lending institutions should provide an alternative source of data to strengthen the reporting framework for off-budget borrowing. The Commission has recommended that Fiscal Responsibility Legislation (FRL) framework of the States be amended to bring uniformity and remove inconsistencies and align them with the fiscal consolidation roadmap of the Commission.

    The Government accepts in-principle, the recommendation of the quantum (expressed as a per cent of GSDP) of net borrowing ceilings for the States. Other recommendations of the Commission including those related to Off-Budget Borrowings, amendment to State FRLs, Union Government Fiscal Deficit will be examined separately.

    Other recommendations

27. In addition to the above, the Commission has made other recommendations including those on rationalizing the structure of Centrally Sponsored Schemes (Para 6.41 of the Volume I of the Report), Reforms in the Power Sector (Chapter 13 of Volume I), Containing and Making Subsidies Efficient (Chapter 14 of Volume I), Public Sector Enterprise Reforms (Chapter 15 of Volume I) etc.

    The Government will examine these recommendations of the Commission in due course.

    Implementation

28. Orders on the accepted recommendations under Article 270 of the Constitution relating to share in Union Taxes and duties, grant to local bodies and financing of disaster management will be issued after obtaining the approval of the President. The recommendations related to Path to Macro and Fiscal Stability, Power Sector, Containing and Making Subsidies Efficient, Public Sector Enterprise Reforms, etc. and other recommendations of the Commission will be acted upon in due course.

New Delhi

NIRMALA SITHARAMAN

February 01, 2026

Minister of Finance

Reservation of seats of Sarpanch & members in Telangana

GOVERNMENT OF TELANGANA
ABSTRACT

PR&RD Department — Elections — Elections to Gram Panchayats under Telangana Panchayat Raj Act, 2018 as amended — Compæhensive Guidelines on reservations in supersession of earlier orders — Regarding.

PANCHAYAT RAJ AND RURAL DEVELOPMENT (MZAD) DEPARTMENT

G.O.Ms. No.46

Dated: 22.11.2025.

Read the following:

1. G.O.Ms No.42, PR&RD, (MZAD) Department, dated 26-09-2025.
2. Hon' ble Supreme Court Judgment in W.P (Civil) No.980 of 2019.
3. G.O Ms.No.49, dt.04-I I -2024 of the Backward ClassesWeIfare (B) Department, Government of Telangana.
4. Telangana Panchayat Raj Act 2 of2025, dt.04-Ol -2025.
5. Dedicated Commission report, dt.20.l I .2025.
6. From the Director, PR&RE, Hyderabad, Lr.N0.CPRRE-G2/ELEC/7/2025-GSection, dt:21.11.2025.

ORDER:

In the reference 6th read above, the Director Panchayat Raj & Rural Employment Hyderabad, has proposed comprehensive guidelines on reservations in Gram Panchayat elections and requested the Government to take necessary action.

2. In the reference 2^ndread above, the Hon 'ble Supreme Court issued orders:

1. To set-up a dedicated Commission to conduct contemporaneous rigorous empirical inquiry in to the nature and implications of the backwardness quota in Gram Panchayats, within the State.
2. To specify the proportion of reservation required to be provisioned Gram Panchayat wise in light of recommendations of the Commission, so as not fall foul of over breadth.
3. In any case such reservation shall not exceed aggregate of 50 percent ofthe total seats reserved in favour of SCs/STs/OBCs taken together.

3. Accordingly, a Dedicated Commission was appointed by the Government vide reference 3 rd read above.

4. In the reference 4th read above, the Section 9, Section 1 7, Section 146, Section 147, Section 175 and Section 176 were amended to make reservations as per the recommendations of the Dedicated Commission.

5. In the reference 5 th read above, the Dedicated Commission has submitted its report recommending number of Ward Members and Sarpanches to be reserved to Scheduled Tribes, Scheduled Castes and Backward Classes.

6. As per Telangana Panchayat Raj Act 2018 as amended vide reference 4th read above, the reservation of seats/offices shall be by rotation commencing from the first ordinary elections held under the act. Ensuing elections shall be treated as second ordinary elections under the Act.

However Elections to those Gram Panchayats/wards which were notified newly after 2019 elections shall be treated as first ordinary elections under the Act. While making reservations to such new Sarpanches / Ward Members any reservations made in earlier elections shall be ignored and shall be treated as afresh.

7. In view of the above and in supersession of the earlier guidelines issued in the GO. I st read above, the following guidelines/procedure for fixation of reservations to Sarpanch & Ward Member are issued for the ensuing Gram Panchayat Elections.

Contd. Page. 2

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I. Procedure for Reservations:

1. As per section 9 and 17 ofTPR Act, 2018, the seats and offices of Ward Member & Sarpanch are to be reserved to the ST, SC, BC and Women members.
2. Reservation in Scheduled Areas:
   1. Article 243M(1) of Constitution of India reads as follows,

      "Nothing in this part (i.e., Part IX of the Constitution) shall apply to the scheduled areas referred to in clause (I) of Article 244 i.e., the scheduled areas of the state (5th/scheduIed area of the country )

   2. Section 255 of TSPR Act 2018 says,

   "The reservation of seats in the Scheduled Areas to every Gram Panchayat & Mandal Praja Parishad shall be in proportion to the population of the communities in that Gram Panchayat or Mandal Praja Parishad as the case may be:

   Provided that the reservation for the Scheduled Tribes shall not be less than one-half of the total number of seats:

   Provided further that all seats of Sarpanches of Gram Panchayats and Presidents of Mandals Praja Parishads shall be reserved for the Scheduled Tribes".

3. Section 9(3) of the T.S.P.R Act, 2018 reads as follows,

   "In the villages where 100% (Hundred percent) population is Scheduled Tribes, all the wards in every Gram Panchayat of such villages shall be filled up by persons belonging to Scheduled Tribes only"

4. The broad scheme of reservations in Gram Panchayats is depicted in the following table:

TABLE

Sl. No.	Office of the elected member	Competent Authority to reserve the Offices	Mode of Election	Section	Office/Seats to be reserved (Identification and allotment)
					ST	SC	BC
1	Ward Member	M.P.D.O	Direct	9	SEEEPC survey 2024	SEEEPC survey 2024	SEEEPC survey 2024
2	Sarpanch	R.D.O	Direct	17	2011 Census Population	2011 Census Population	SEEEPC survey 2024 Population

Contd. Page. 3

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II. Steps to be followed in allotting Seats of Ward Members:

1. As per Sub Section 7(b) of Section 9 of TPR Act, 2018 the Mandal Parishad Development Officer is the competent authority to make reservations to ST, SC and BC in respect of Wards.
2. As per Sub Section 12 of Section 9 ofTPR Act, 2018, as amended vide reference 4th read above.

   "Notwithstanding anything contained in this section, whenever a Dedicated Commission is appointed, reservations shall be made as per the recommendations of such Commission, approved by the Government".

3. Number of seats to be reserved to each category is indicated by the Dedicated Commission.
4. 1. As per sub section 8 of Section 9, as amended vide reference 4th read above, the reservation of Wards for Scheduled Tribes, Scheduled Castes, Backward Classes and Women shall be by rotation as far as practicable,commencing from the first ordinary election under this Act.Ensuing elections shall be treated as second ordinary elections under the Act.
   2. As per sub section 9(a) of Section 9, while allotting the wards by rotation Scheduled Tribe, Scheduled Tribe (women), Scheduled Caste, Scheduled Caste (women), Backward Classes, Backward Classes (women) un-reserved and Unreserved (women) shall be treated as separate categories:
   3. In previous election, if certain ward was reserved for Women in any category (ST/SC/BC/UR) the same ward shall not be reserved again this time to Women of any category, as far as practicable.
   4. If there are less number of wards left, after excluding wards reserved in the previous election, remaining wards shall be straightaway reserved to Women and for balance lottery shall be drawn.
   5. However, the reservations made to any category in the previous elections (2019) but elections could not take place to the concerned office, the reservations already made may be retain as it is in the ensuing elections, as the benefit of reservation could not be enjoyed by the concerned category.

   As per explanation to subsection 9(a) of section 9 of Telangana Panchayat Raj Act, 2018 :

   Explanation:- For the removal ofdoubts, i/ is hereby declared that:-
   In case where the reservation for Scheduled Tribes or Scheduled Castes cannot be made due to non availability of their population* in required number of wards, then the reservation shall be made in descending order in such of those wards where the population* of Scheduled Tribes / Scheduled Castes are available in the first instance, and thereafter, the remaining reservation of Wards shall be made on the basis ofdraw oflots.

   * As shown in the table above, the reservation of Wards to ST/SC/BC is based on the population of SEEEPC survey 2024.

   Note: This rule is applicable to the Backward Classes also.

5. The Mandal Parishad Development Officer shall reserve in respect of Wards in the Gram Panchayat to ST, SC and BC basing on the proportionate population to the total population of the Ward in each category.
6. Work out in separate statements the proportion of population as per SEEEPC survey 2024 to the total population of the Ward for each Gram Panchayat in each category i.e., STS, SCS and BCS arrange them in the descending order.
7. First take ST descending order statement. Strike of the Wards allotted to the Scheduled Tribes during the earlier Ordinary Elections. Take the required number of wards from the remaining wards which are to be reserved for STS in the descending order.
8. Next the statement containing the SC descending orders has to be taken. Strike off the wards allotted to the Scheduled Castes during the earlier Ordinary Elections. Strike off the wards reserved for STS, as above. Take the required number of wards from the remaining wards which are to be reserved for SCS in the descending order.
9. Next the statement containing the BC descending orders has to be taken. Strike off the wards allotted to the BCS during the earlier Ordinary Elections. Strike off the wards reserved for STS & SCs, as above. Take the required number of wards from the remaining wards which are to be reserved for BCS in the descending order.
10. The wards remaining after striking off the wards reserved for STS, SCs, and BCS on the above mentioned lines will be un-reserved.
11. 1. As regards to reservation for women belonging to STS, SCs, BCS and Un-reserved it shall be made from among the wards reserved for STS, SCs, BCS and Un-reserved by draw of lots, as per point no. 4(i) and (ii) above.
    2. As per sub-section 6 of section 9 of Telangana Panchayat Raj Act, 2018 one half of the number of wards reserved for Scheduled Tribes, Scheduled Castes & Backward Classes and one half of the un-reserved wards shall be reserved for Women in each Gram Panchayat.
    3. While doing so a fraction of 0.5 shall be taken as zero, otherwise quantum of Women reservation breaches the above statutory provision.

Contd. Page. 4

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III. Steps to be followed in allotting Office of Sarpanches:

1. As per Sub Section 9(a) of Section 17 of Telangana Panchayat Raj Act, 2018 the Revenue Divisional officer is the competent authority to make reservations to ST, SC and BC in respect of Sarpanches,
2. As per Sub Section 12 of Section 17 of Telangana Panchayat Raj Act, 2018, as amended vide reference 4th read above.

   "Notwithstanding anything contained in this section, whenever a Dedicated Commission is appointed, reservations shall be made as per the recommendations of such Commission, approved by the Government".

3. Number of offices to be reserved to each category is indicated by the Dedicated Commission.
4. 1. As per sub section of Section 17, as amended vide reference 4th read above, the reservation of offices for Scheduled Tribes, Scheduled Castes, Backward Classes and Women shall be by rotation as far as practicable commencing from the first ordinary election under this Act. The offices reserved to STS, SCs, BCS during the earlier ordinary elections shall not be again reserved to the same category till a cycle of reservations in that category is completed.

      In case where the reservation for Scheduled Tribes or Scheduled Castes or Backward Classes cannot be made due to non availability of their population in required number of Gram Panchayats, then the reservation shall be made in descending order in such of those Gram Panchayats where the population of Scheduled Tribes / Scheduled Castes/ Backward Classes are available in the first instance, and thereafter, the remaining reservation of Gram Panchayts shall be made on the basis of draw of lots.

   2. As per sub section of Section 17, for allotting the offices by rotation to the Scheduled Tribe, Scheduled Tribe (women), Scheduled Caste, Scheduled Caste (women), Backward Classes, Backward Classes (women) Un-reserved and unreserved (women) shall be treated as separate categories:
   3. In previous election, if certain Gram Panchayat was reserved for Women in any category (ST/SC/BC/UR) the same Gram Panchayats shall not be reserved again this time to Women of any category, as far as practicable.
   4. If there are less number of Gram Panchayats left, after excluding Gram Panchayats reserved in the previous election, remaining Gram Panchayats shall be straight away be reserved to Women and for balance lottery shall be drawn.
   5. However, the reservations made to any category in the previous elections (2019) but elections could not take place to the concerned office, the reservations already made may be retained as it is in the ensuing elections, as the benefit of reservation could not be enjoyed by the concerned category.
   6. For the purpose of reservation for Grama Panchayats where the population is 100% STS, all the offices of Sarpanches shall be reserved for Scheduled Tribes only.
5. The Revenue Divisional Officer shall, allot offices of Sarpanches in of each Mandal Praja Parishad, for the members belonging to ST, SC and BC basing on the proportionate population to the total population of the Gram Panchayat in each category.
6. Work out in separate statements the proportion of population, as per 2011 census, to the total population of the Gram Panchayat for each Mandal in case of STS and SCS and arrange them in the descending order. Whereas, in the case of BCS, such statement shall be prepared based on the proportion of the BC population to the total population as per SEEPC Survey 2024.
7. First take ST descending order statement. Strike off the Sarpanches allotted to the Scheduled Tribes during the earlier Ordinary Elections. Take the required number of Sarpanches from the lemaining Sarpanches which are to be reserved for STS in the descending order.
8. Next the statement containing the SC descending orders has to be taken. Strike off the Sarpanches allotted to the Scheduled Castes during the earlier Ordinary Elections. Strike off the Sarpanches reserved for STS, as above. Take the required number of Sarpanches from the remaining Sarpanches which are to be reserved for SCS in the descending order.
9. Next the statement containing the BC descending orders has to be taken. Strike off the Sarpanches allotted to the BCS during the earlier Ordinary Elections. Strike off the Sarpanches reserved for STS & SCs, as above. Take the required number of Sarpanches from the remaining Sarpanches which are to be reserved for BCS in the descending order.
10. The Sarpanches remaining after striking off the offices of Sarpanches reserved for STS, SCs, and BCS on the above mentioned lines will be Un-reserved.
11. 1. As regards to reservation for women belonging to STS, SCs, BCS and un-reserved it shall be made from among the Sarpanches reserved for STS, SCs, BCS and unreserved by draw of lots, as per point no. 4(i) and (ii) above.
    2. As per sub-section 7(c) of section 17 of Telangana Panchayat Raj Act, 2018 one half of the number of Gram Panchayats reserved for Scheduled Tribes, Scheduled Castes & Backward Classes and one half of the un-reservecl Gram Panchayats shall be reserved for Women in each Gram Panchayat.
    3. While doing so a fraction of 0.5 shall be taken as zero, otherwise quantum of Women reservation breaches the above statutory provision.

8. The Director and State Election Authority, Panchayat Raj and Rural Employment, Hyderabad and District Collectors and District Election Authorities (Except Hyderabad and Medchal Malkajigiri Districts) shall take further necessary action in the matter accordingly.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)

N.SRIDHAR

PRINCIPAL SECRETARY TO GOVERNMENT

To
The Director and State Election Authority,
Panchayat Raj and Rural Employment, Hyderabad.
All District Collectors and District Election Authorities
(except Hyderabad and Medchal Malkajigiri Districts)
SF/SC

//FORWARDED BY ORDER]/

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Telangana State Scheduled Castes and Scheduled Tribes Special Development Fund

THE TELANGANA STATE SCHEDULED CASTES AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND
(PLANNING, ALLOCATION AND UTILIZATION OF FINANCIAL RESOURCES) ACT, 2017.
(ACT NO. 18 OF 2017)
ARRANGEMENT OF SECTIONS

Sections

CHAPTER - I
PRELIMINARY

1. Short title, extent and commencement.
2. Definitions.
   CHAPTER - II
   PLANNING, RESOURCE ALLOCATION AND SCHEMES FOR SCHEDULED CASTES SPECIAL DEVELOPMENT FUND AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND
3. Earmarking of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund from Pragathipaddu outlays.
4. Communication of provisional outlay earmarked as Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund to the Departments.
5. Schemes to be included under the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund.
6. Promotion of equity among Scheduled Castes and Scheduled Tribes.
7. Obligation to cover Scheduled Castes/ Scheduled Tribes in general schemes.2 [Act No. 18 of 2017
8. Formulation of schemes for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund.
9. Submission of Schemes to be included in each year in the Special Development Fund for appraisal.
CHAPTER - III
APPRAISAL, ALLOCATION AND APPROVAL OF SCHEMES UNDER SCHEDULED CASTES SPECIAL DEVELOPMENT FUND AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND.
10. Appraisal of the SCSDF and STSDF Schemes by the Nodal Agency.
11. Allocation of Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund for financing the SCSDF/STSDF schemes included in the Special Development Funds.
12. Recommendation by the Nodal Agencies and Nodal Department.
    CHAPTER - IV
    BUDGET PROVISIONING, DISTRIBUTION AND STRENGTHENING OF IMPLEMENTATION MACHINERY
13. Budget allocations.
14. Unspent amount to be compensated.
15. Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund wing in Finance Department.
16. Budget Release Orders.
    CHAPTER - V
    INSTITUTIONAL ARRANGEMENTS
17. State Council for Development of Scheduled Castes/ Scheduled Tribes.
18. Functions of the State Council.
19. Nodal Agency and Nodal Department.
20. Functions of Nodal Agency and Nodal Department.
21. …
22. Administrative and technical support to Nodal Department for SCSDF & STSDF.
23. Department level Special Development Fund Support Unit.
24. Implementation of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund schemes in the district.
25. Institutional strengthening for effective implementation and monitoring.
    CHAPTER - VI
    TRANSPARENCY AND ACCOUNTABILITY IN THE IMPLEMENTATION OF SCHEDULED CASTES SPECIAL DEVELOPMENT FUND/SCHEDULED TRIBES SPECIAL DEVELOPLMENT FUND SCHEMES
26. Transparency and accountability.
27. Incentives and penalities.
28. Annual Report to be placed before State Legislature.
29. Power to make rules.
30. Power to remove difficulties.
31. …
32. Repeal and savings.

Contd.Page. 2.

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THE TELANGANA STATE SCHEDULED CASTES AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND
(PLANNING, ALLOCATION AND UTILIZATION OF FINANCIAL RESOURCES) ACT, 2017.

AN ACT TO ENSURE, ACCELERATED DEVELOPMENT OF SCHEDULED CASTES AND SCHEDULED TRIBES WITH EMPHASIS ON ACHIEVING EQUALITY IN THE COMING YEARS FOCUSING ON ECONOMIC, EDUCATIONAL AND HUMAN DEVELOPMENT ALONGWITH ENSURING THEIR SECURITY AND SOCIAL EMPOWERMENT AND PROMOTING EQUITY AMONG SCHEDULED CASTES AND THE SCHEDULED TRIBES, BY EARMARKING A PORTION, IN PROPORTION TO THE POPULATION OF SCHEDULED CASTES AND SCHEDULED TRIBES IN THE STATE, OF THE TOTAL PRAGATIPADDU OUTLAY OF THE STATE OF TELANGANA AS THE SCHEDULED CASTES SPECIAL DEVELOPMENT FUND/ SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND OF THE STATE AND ENSURING EFFECTIVE INSTITUTIONAL MECHANISMS FOR THE IMPLEMENTATION AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.

Be it enacted by the Legislature of the State of Telangana in the Sixty-eighth Year of the Republic of India, as follows:-

Received the assent of the Governor on the 30th March, 2017.

CHAPTER - I
PRELIMINARY

1. Short title, extent and commencement.

1. This Act may be called the Telangana State Scheduled Castes and Scheduled Tribes Special Development Fund (Planning, Allocation and Utilization of Financial Resources) Act, 2017.
2. It extends to the whole of the State of Telangana.
3. It shall come into force on such date as the State Government may, by notification in the Telangana Gazette, appoint, and different dates may be appointed for different provisions of this Act.

2. Definitions.In this Act, unless the context otherwise requires,-

1. “Department” means, any Government Department concerned with implementation of the Pragathipaddu schemes for the welfare of Scheduled Castes and Scheduled Tribes;
2. “Gaps in development” means, differences in development indicators of Scheduled Castes/Scheduled Tribes when compared to the State averages, as may be prescribed particularly relating to human and economic development;
3. “General Schemes” means, schemes included in the Annual Pragathipaddu of the Departments which benefit all social groups including Scheduled Castes and Scheduled Tribes;
4. “Government” means, the State Government of Telangana;
5. “Nodal Agency for SCSDF” means, the committee headed by Minister of Scheduled Castes Development;
6. “Nodal Agency for STSDF” means, the committee headed by the Minister of Tribal Welfare;
7. “Nodal Department” means, Scheduled Castes Development Department for Scheduled Castes and Tribal Welfare Department for Scheduled Tribes;
8. “Notification” means notification published in the Telangana Gazette and the word „Notified‟ shall be construed accordingly;
9. “Prescribed” means, prescribed by the Government by rules made under the Act;
10. “Pragathipaddu” means, the total Scheme Expenditure budget of the State as provided in the Appropriation Act;
11. “State Council” means, State Council for Development of Scheduled Castes and Scheduled Tribes headed by the Chief Minister constituted under the Act;
12. “Scheduled Castes and Scheduled Tribes” shall have the meanings assigned to them respectively under clauses (24) and (25) of article 366 of the Constitution of India;
13. “Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund” means, a portion of the total Pragathipaddu outlays of the State, in a financial year, as earmarked under section 3;
14. “Scheduled Caste/Scheduled Tribe habitation” means, any habitation where population of Scheduled Castes or Scheduled Tribes is not less than 40% of the total population of the habitation respectively;
15. “Special Development Fund” means, Scheduled Castes Special Development Fund (SCSDF) or Scheduled Tribes Special Development Fund (STSDF) or both;
16. “Scheduled Areas” means, areas notified under Part C of Fifth Schedule to the Constitution of India;
17. “Report regarding administration of Scheduled Areas” means, the Report by the Governor to the President of India regarding administration of Scheduled Areas as mentioned in paragraph 3 of Part A of Fifth Schedule to the Constitution of India;
18. “Telangana Tribes Advisory Council” means, the Tribes Advisory Council established for the State of Telangana as mentioned in paragraph 4 of Part B of Fifth Schedule to the Constitution of India.

Contd.Page. 3.

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CHAPTER - II
PLANNING, RESOURCE ALLOCATION AND SCHEMES FOR SCHEDULED CASTES SPECIAL DEVELOPMENT FUND AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND

3. Earmarking of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund from Pragathipaddu outlays. The State shall, in every financial year, earmark in such manner as may be prescribed, a portion of the total pragathipaddu outlays of the State which shall be proportionate to the Scheduled Castes/Scheduled Tribes population of the State, to be called as Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund.

4. Communication of provisional outlay earmarked as Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund to the Departments.The Department as may be authorized by the Government shall, every financial year, communicate, in the manner prescribed, to the other departments, a provisional outlay out of the Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund as earmarked under section 3 for preparation of respective department wise schemes for Scheduled Castes and Scheduled Tribes.

5. Schemes to be included under the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund.The Special Development Funds of the departments Schemes to be shall include only such schemes that secure direct and included under quantifiable benefits to the Scheduled Caste/Scheduled the Scheduled Castes Special Tribe individuals or Scheduled Caste/Scheduled Tribe Development households or Scheduled Caste/Scheduled Tribe Fund/ Scheduled habitations or Tribal areas that have the potential to bridge Tribes Special the gaps in development following the norms laid down in Development this Act and the rules made thereunder.

6. Promotion of equity among Scheduled Castes and Scheduled Tribes.The departments shall prepare an action plan for Promotion of Scheduled Castes Special Development Fund and equity among Scheduled Tribes Special Development Fund to promote Scheduled Castes and Scheduled equity in the development among various social groups Tribes. within Scheduled Castes/ Scheduled Tribes and focused development of Scheduled Caste/ Scheduled Tribe habitations. In case of Scheduled Tribes Special Development Fund, special attention shall be paid to Scheduled Tribes residing in the Scheduled Areas.

7. Obligation to cover Scheduled Castes/Scheduled Tribes in general schemes.The departments shall ensure coverage of Scheduled Castes/Scheduled Tribes in the ongoing general schemes consistent with their eligibility for the same.

8. Formulation of schemes for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund. On receipt of communication under section 4, each department, shall, after ascertaining the gaps in the development of Scheduled Castes/Scheduled Tribes, prioritize the development needs of Scheduled Castes/Scheduled Tribes through a consultative process, as may be prescribed, and shall formulate the schemes for Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund within the State Annual Pragathipaddu priorities.

9. Submission of Schemes to be included in each year in the Special Development Fund for appraisal. Each Department, excluding the departments separately notified under this Act, shall submit, each year to the respective Nodal Departments, the Special Development Fund Schemes proposed to be included in the Special Development Funds, for appraisal by the Nodal Agency concerned, within the time frame and in the format, as may be prescribed.

Contd.Page. 4.

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CHAPTER - III
APPRAISAL, ALLOCATION AND APPROVAL OF SCHEMES UNDER SCHEDULED CASTES SPECIAL DEVELOPMENT FUND AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND.

10. Appraisal of the SCSDF and STSDF Schemes by the Nodal Agency. The Nodal Agency for Scheduled Castes Special Development Fund / Scheduled Tribes Special Development Fund, shall take up appraisal of schemes respectively submitted by the departments, to ensure conformity with the conditions and norms laid down in the Act.

11. Allocation of Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund for financing the SCSDF/STSDF schemes included in the Special Development Funds. The respective Nodal Agency, while indicating allocation Allocation of of Scheduled Castes Special Development Fund and Scheduled Castes Scheduled Tribes Special Development Fund to the Special schemes shall follow the norms mentioned below:-

1. for schemes exclusively benefitting Scheduled Special Caste/ Scheduled Tribe individuals or Scheduled Caste/ Development Scheduled Tribe households, 100% of scheme cost shall be Fund for financing allocated and accounted for under Scheduled Castes the SCSDF/STSDF Special Development Fund or Scheduled Tribes Special schemes included Development Fund, as the case may be;
2. for schemes benefitting Scheduled Caste/ Scheduled Tribe habitations, 100% of scheme cost shall be allocated and accounted for under Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund. In case of other habitations the cost shall be allocated and accounted in proportion of the population of the Scheduled Castes or Scheduled Tribes;
3. for general schemes, included in the Special Development Fund, benefitting Scheduled Caste/ Scheduled Tribe individuals or Scheduled Caste/Scheduled Tribe households, along with others, the scheme cost shall be allocated and accounted for under Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund, as per the Scheduled Caste/ Scheduled Tribe beneficiaries covered;
4. in respect of non-divisible infrastructure works, a portion of the scheme cost as may be determined by the Government shall be deemed to have been attributed for Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund respectively.

12. Recommendation by the Nodal Agencies and Nodal Department.The schemes that fulfill the norms laid down in the Act shall be recommended by Nodal Agency for Scheduled Castes Development and Nodal Agency for Tribal Welfare for inclusion in the Annual Pragathipaddu proposals of the departments and aggregated for placing before the State Council for Development of Scheduled Castes and Scheduled Tribes for consideration and approval.

Contd.Page. 5.

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CHAPTER - IV
BUDGET PROVISIONING, DISTRIBUTION AND STRENGTHENING OF IMPLEMENTATION MACHINERY

13. Budget allocations.The Schemes proposed by the State Council for Scheduled Castes Special Development Fund/Scheduled Tribes Special Development fund shall be considered for inclusion in the Demands for Grants for the departments under the relevant head of account for the Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund.

14. Unspent amount to be compensated. If any amount of Special Development Fund remains unspent, it shall be compensated in the next financial year in the same proportion on the reach of actual expenditure to total budget estimate of Pragathipaddu at the end of a financial year in the manner prescribed.

15. Scheduled Castes Special Development Fund and Scheduled Tribes special Development Fund wing in Finance Department. There shall be an exclusive Secretary, Finance in Finance Department for performing the functions relating to Budget implementation and allocation according to the provisions of this Act within the overall discipline of the ways and means position as determined by the Finance department.

16. Budget Release Orders. Budget Release Orders shall be issued to each Budget Release department, for the amount provided in the Budget Orders. Estimates for Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund immediately after passing of the budget by the State Legislature in accordance with the Schedule and norms prescribed.

Contd.Page. 6.

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CHAPTER - V
INSTITUTIONAL ARRANGEMENTS

17. State Council for Development of Scheduled Castes/Scheduled Tribes.

1. As soon as may be, after the commencement of this State Council for Act, the Government shall, by notification, constitute a Development of Council under the Chief Minister, to be known as the State Scheduled Castes/ Council for Development of Scheduled Castes and Scheduled Tribes. Scheduled Tribes to exercise the powers conferred and to perform the functions assigned to it under the Act and the rules made thereunder.
2. The State Council shall meet at least twice in a year.

18. Functions of the State Council.The State Council shall,-

1. advise the State Government on all the policy matters relating to Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund;
2. suggest measures for proper planning and implementation of the schemes by the departments;
3. approve proposals for Scheduled Castes Special Development fund / Scheduled Tribes Special Development Fund of the departments annually;
4. perform such other functions as may be prescribed.

19. Nodal Agency and Nodal Department.

1. Nodal Agencies headed by Ministers of Scheduled Castes Development and Tribal Welfare, shall be constituted in the manner prescribed, for Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund respectively and they shall exercise the powers conferred and perform the functions assigned under this Act.
2. The Scheduled Castes Development Department and Tribal Welfare Department shall act as Nodal Departments for assisting the respective Nodal Agency to perform its functions and exercise its powers.

Contd.Page. 7.

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20. Functions of Nodal Agency and Nodal Department.The respective Nodal Agency with the assistance of the respective Nodal Department shall,-

1. evaluate and appraise the proposals of the Department for Special Development Fund for ensuring conformity to the provisions of this Act;
2. prepare State Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund proposals for placing before the State Council for Development of Scheduled Castes and Scheduled Tribes for consideration and approval;
3. recommend reallocation of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund from a department to other department;
4. review the implementation, monitoring, preparation and submission of periodical report/s of the Special Development Fund Schemes as may be prescribed;
5. identify impediments and suggest measures for overcoming the impediments;
6. co-ordinate with the departments for preparation of State level and district level Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund plan;
7. maintain scheme wise, district wise, village wise and beneficiary wise details as may be prescribed, for transparency and monitoring the progress of the implementation, expenditure, output and outcome indicators as may be prescribed for Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund;
8. facilitate annual social auditing of expenditure of Special Development Funds and facilitate analysis of improvement in Human Development or any other indicator as may be prescribed.

21. Direction of the Nodal AgencyThe directions of the Nodal Agency shall be binding on the Departments.

22. Administrative and technical support to Nodal Department for SCSDF & STSDF:The Government shall appropriately strengthen the Nodal Departments of Scheduled Castes Development and Tribal Welfare with an Administrative and Technical Support Unit and a Special Development Fund Research Centre as may be prescribed, to perform the functions and discharge the duties assigned to it and to assist the respective Nodal Agency.

23.  Department level Special Development Fund Support Unit.The departments as identified by the State Council may establish a Special Development Fund Support Unit, as may be prescribed to manage the respective Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund.

24. Implementation of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund schemes in the district.

1. The Government shall constitute a District Monitoring Committee in each district with the Collector as its Chairman, which shall be responsible for implementation of the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund in the district.
2. The District Monitoring Committee of the district shall review the implementation of Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund periodically.

25. Institutional strengthening for effective implementation and monitoring.The respective departments of Government shall take such measures as may be necessary for institutional strengthening of State, District and Sub-District units by providing necessary guidelines, staff and training to the staff in the manner prescribed, for effective implementation and monitoring.

Contd.Page. 8.

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CHAPTER - VI
TRANSPARENCY AND ACCOUNTABILITY IN THE IMPLEMENTATION OF SCHEDULED CASTES SPECIAL DEVELOPMENT FUND/SCHEDULED TRIBES SPECIAL DEVELOPLMENT FUND SCHEMES

26. Transparency and accountability. Each department shall ensure transparency and accountability at all levels in the implementation of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund schemes.

27. Incentives and penalities. Government shall formulate an appropriate scheme, to award incentives for commendable performance and disincentives for proven negligence and lack of due diligence, in discharge of responsibilities under this Act by any functionary or official concerned:

Provided that disciplinary action shall be governed by the relevant service/disciplinary rules applicable to the Government officials and functionaries.

28. Annual Report to be placed before State Legislature.The Nodal agency shall place before the State Annual Report to Legislature, an Annual Report on outcome of be placed before implementation of Scheduled Castes Special Development State Legislature. Fund/ Scheduled Tribes Special Development Fund containing department-wise achievements and the unutilised funds during the financial year under report. The report on Scheduled Tribes Special Development Fund to the extent of Scheduled Areas shall form part of the Report regarding the administration of Scheduled Areas to be submitted to Governor in consultation with Telangana Tribes Advisory Council.

29. Power to make rules.

1. Subject to the other provisions of this Act, the Power to make Government may, by notification, make rules for carrying rules. out all or any of the purposes of this Act.
2. In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
   1. determination of gaps in development of Scheduled Castes and Scheduled Tribes under section 2;
   2. earmarking Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Funds from the Pragathipaddu outlays under section 3;
   3. identification of and preparation of schemes under Special Development Fund by the departments under section 8;
   4. preparation of budget proposal of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund for appraisal by the Nodal Departments under section 9;
   5. strengthen the Finance Department for monitoring expenditures under the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 15;
   6. constitution of, and transaction of business in the State Council for Development of Scheduled Castes and Scheduled Tribes, the qualification, disqualification and other allowances to the non-official members of the State Council under section 17;
   7. constitution of Nodal Agencies for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 19;
   8. constitution of Administrative and Technical Support Unit in respective Nodal Department for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 22;
   9. constitution of Special Development Fund Support Unit at department level under section 23;
   10. constitution of District Monitoring Committee and the connected matters under section 24;
   11. institutional strengthening at State, district and sub-district level for ensuring effective implementation, awareness, mass contact programme, social audit and monitoring of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 25; and
   12. procedures for ensuring transparency and accountability in the implementation of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 26.
3. Every rule made under this Act shall, immediately after it is made, be laid before each House of the State Legislature, if it is in session and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions and if, before the expiration of the session in which it is so laid or the session immediately following the Legislature agrees in making any modification in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified, have effect only in such modified form or shall stand annulled as the case may be so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Contd.Page. 9.

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30. Power to remove difficulties.

1. If any difficulty arises in giving effect to the provisions o the Act, the Government may, by order, make such provisions or give such directions not inconsistent with the provisions of the Act as may appear to it to be necessary or expedient for the removal of the difficulty:

   Provided that no such power shall be exercised after the expiry of a period of two years from the commencement of this Act.

2. Every order made under this section shall be laid, as soon as it is made, before each House of the State Legislature.

31.  Constitution of CommiteeThe Government may constitute a committee consisting of such official and non-official members on such terms and conditions as may be prescribed, to carry out the functions entrusted to it in connection with monitoring the implementation of the provisions under this Act.

32. Repeal and savings.The Telangana Scheduled Castes Sub-Plan and Tribal Sub-Plan (Planning, Allocation and Utilisation of Financial Resources) Act, 2013 is hereby repealed and upon such repeal the Telangana General Clauses Act, 1891 shall apply.

* * *

Pages: 1 2 3 4 5 6 7 8 9

Central Finance Commissions since Independance

Finance Commission	Year of Establishment	Chairman	Operational Duration
First	1951	K.C.Neyogi	1952-57
Second	1956	K. Santhanam	1957-62
Third	1960	A.K. Chanda	1962-66
Fourth	1964	P.V. Rajamannar	1966-69
Fifth	1968	Mahaveer Tyagi	1969-74
Sixth	1972	K. Brahmananda Reddy	1974-79
Seventh	1977	J.M. Shelat	1979-84
Eighth	1983	Y.B. Chavan	1984-89
Ninth	1987	N.K.P. Salve	1989-95
Tenth	1992	K.C.Panth	1995-20
Eleventh	1998	A.M. Khusro	2000-05
Twelfth	2002	C. Rangarajan	2005-10
Thirteenth	2007	Dr. Vijay L.Kelkar	2010-15
Fourteenth	2013	Dr.Y.V. Reddy	2015-20
Fifteenth	2017	N.K. Singh	2020-26
Sixteenth	2023	Dr. Arvind Panagariya	2026-31