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
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 2ndread above, the Hon 'ble Supreme Court issued orders:
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.
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.
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:
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.
Reservation in Scheduled Areas:
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 )
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".
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"
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:
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.
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".
Number of seats to be reserved to each category is indicated by the Dedicated Commission.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
The wards remaining after striking off the wards reserved for STS, SCs, and BCS on the above mentioned lines will be un-reserved.
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.
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.
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:
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,
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".
Number of offices to be reserved to each category is indicated by the Dedicated Commission.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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
Short title, extent and commencement.
Definitions.
CHAPTER - II
PLANNING, RESOURCE ALLOCATION AND SCHEMES FOR SCHEDULED CASTES SPECIAL DEVELOPMENT FUND AND SCHEDULED TRIBES SPECIAL DEVELOPMENT FUND
Earmarking of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund from Pragathipaddu outlays.
Communication of provisional outlay earmarked as Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund to the Departments.
Schemes to be included under the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund.
Promotion of equity among Scheduled Castes and Scheduled Tribes.
Obligation to cover Scheduled Castes/ Scheduled Tribes in general schemes.2 [Act No. 18 of 2017
Formulation of schemes for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund.
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.
Appraisal of the SCSDF and STSDF Schemes by the Nodal Agency.
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.
Recommendation by the Nodal Agencies and Nodal Department.
CHAPTER - IV BUDGET PROVISIONING, DISTRIBUTION AND STRENGTHENING OF IMPLEMENTATION MACHINERY
Budget allocations.
Unspent amount to be compensated.
Scheduled Castes Special Development Fund and Scheduled Tribes Special Development Fund wing in Finance Department.
Budget Release Orders.
CHAPTER - V
INSTITUTIONAL ARRANGEMENTS
State Council for Development of Scheduled Castes/ Scheduled Tribes.
Functions of the State Council.
Nodal Agency and Nodal Department.
Functions of Nodal Agency and Nodal Department.
…
Administrative and technical support to Nodal Department for SCSDF & STSDF.
Department level Special Development Fund Support Unit.
Implementation of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund schemes in the district.
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
Transparency and accountability.
Incentives and penalities.
Annual Report to be placed before State Legislature.
Power to make rules.
Power to remove difficulties.
…
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.
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.
It extends to the whole of the State of Telangana.
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,-
“Department” means, any Government Department concerned with implementation of the Pragathipaddu schemes for the welfare of Scheduled Castes and Scheduled Tribes;
“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;
“General Schemes” means, schemes included in the Annual Pragathipaddu of the Departments which benefit all social groups including Scheduled Castes and Scheduled Tribes;
“Government” means, the State Government of Telangana;
“Nodal Agency for SCSDF” means, the committee headed by Minister of Scheduled Castes Development;
“Nodal Agency for STSDF” means, the committee headed by the Minister of Tribal Welfare;
“Nodal Department” means, Scheduled Castes Development Department for Scheduled Castes and Tribal Welfare Department for Scheduled Tribes;
“Notification” means notification published in the Telangana Gazette and the word „Notified‟ shall be construed accordingly;
“Prescribed” means, prescribed by the Government by rules made under the Act;
“Pragathipaddu” means, the total Scheme Expenditure budget of the State as provided in the Appropriation Act;
“State Council” means, State Council for Development of Scheduled Castes and Scheduled Tribes headed by the Chief Minister constituted under the Act;
“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;
“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;
“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;
“Special Development Fund” means, Scheduled Castes Special Development Fund (SCSDF) or Scheduled Tribes Special Development Fund (STSDF) or both;
“Scheduled Areas” means, areas notified under Part C of Fifth Schedule to the Constitution of India;
“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;
“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:-
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;
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;
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;
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.
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.
The State Council shall meet at least twice in a year.
18. Functions of the State Council.The State Council shall,-
advise the State Government on all the policy matters relating to Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund;
suggest measures for proper planning and implementation of the schemes by the departments;
approve proposals for Scheduled Castes Special Development fund / Scheduled Tribes Special Development Fund of the departments annually;
perform such other functions as may be prescribed.
19. Nodal Agency and Nodal Department.
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.
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,-
evaluate and appraise the proposals of the Department for Special Development Fund for ensuring conformity to the provisions of this Act;
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;
recommend reallocation of Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund from a department to other department;
review the implementation, monitoring, preparation and submission of periodical report/s of the Special Development Fund Schemes as may be prescribed;
identify impediments and suggest measures for overcoming the impediments;
co-ordinate with the departments for preparation of State level and district level Scheduled Castes Special Development Fund/Scheduled Tribes Special Development Fund plan;
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;
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.
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.
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.
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.
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:-
determination of gaps in development of Scheduled Castes and Scheduled Tribes under section 2;
earmarking Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Funds from the Pragathipaddu outlays under section 3;
identification of and preparation of schemes under Special Development Fund by the departments under section 8;
preparation of budget proposal of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund for appraisal by the Nodal Departments under section 9;
strengthen the Finance Department for monitoring expenditures under the Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 15;
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;
constitution of Nodal Agencies for Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 19;
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;
constitution of Special Development Fund Support Unit at department level under section 23;
constitution of District Monitoring Committee and the connected matters under section 24;
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
procedures for ensuring transparency and accountability in the implementation of Scheduled Castes Special Development Fund/ Scheduled Tribes Special Development Fund under section 26.
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.
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.
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.
ALLOWANCES – Recommendations of PRC 2010 – Payment of HRA and CCA while on Leave of all kinds in respect of State Government Employees – Orders – Issued.
-------------------------------------------------------------------------------------------------- FINANCE (FR.I) DEPARTMENT
G.O. Ms. No. 28
Dt. 09-03-2011
Read the following:
G.O.Ms.No.438, G.A. (Spl.A) Dept., dt. 7-7-2008.
G.O.Ms.No.153, Finance (FR.I) Dept., dt. 4-5-2010
***
O R D E R:
In the Government Order 1st read above, orders were issued constituting Ninth Pay Revision Commission and government appointed Sri C.S. Rao, IAS, (Retd.), as Pay Revision Commissioner.
2. The Ninth Pay Revision Commission submitted its report to the Government on 5-122009 and recommended, inter alia that, “as in the case of regulation of D.A. while on leave, the payment of H.R.A. & C.C.A. may also be allowed to State Govt. employees as applicable to the employees of Govt. of India. The Commission therefore recommends the payment of H.R.A./C.C.A. upto 180 days during leave of all kinds in the normal course.
3. In the Government order 2nd read above, it was ordered that the maximum earned leave that may be granted at a time to a government servant in superior service is enhanced from 120 days to 180 days on par with the employees of the Govt. of India.
4. After careful examination of the report, Government decided to accept the recommendations of the Pay revision Commissioner and hereby order that, the payment of HRA and CCA shall be allowed to State Govt. employees upto 180 days during leave of all kinds.
5. These orders will come into force with immediate effect.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
L.V. SUBRAHMANYAM
PRL. SECRETARY TO GOVERNMENT (FP)
To
All Departments of Secretariat (10 copies each)
The accountant General, A.P., Hyderabad (20 copies)
The accountant General, A.P., Hyderabad (by name) The Pay and Accounts Officer, Hyderabad The Secretary to Governor, A.P., Hyderabad.
All Secretaries to Government.
The Private secretary to the chief Minister and Private Secretaries to all Ministers.
All the Heads of Departments (including Collectors and District Judges0 The registrar, High court of Andhra Pradesh, Hyderabad (with covering letters) All the District Treasury officers.
The secretary, A.P. GENCO/TRANSCO.
The General Manager, A.P. State Road Transport Corporation, Hyderabad (with covering letter) All District Educational Officers.
All district Panchayat Officers.
All secretaries of Zilla Grandhalaya Samsthas through the Director of Public Libraries, Hyderabad.
All Secretaries of Agricultural Market Committees through Director of Marketing, A.P., Hyderabad.
All Commissioners/Special Officers of Municipalities.
All Recognized Service Associations.
The Director, Government Central Press, A.P., Hyderabad for publication in the A.P. gazette.
Copy to the General administration (Cabinet) Department.
Copy to the General administration (SW) Dept.
Copy to SF/SCs.
Panchayats – The Andhra Pradesh Gram Panchayat Land Development (Layout and Building) Rules 2002 – Amendment - Orders – Issued.
PANCHAYAT RAJ &RURAL DEVELOPMENT (PTS.III) DEPARTMENT
G.O.MS.No. 26
Dated: 12-04-2018
Read the following:
G.O.Ms.No.67, PR&RD(Pts.IV) Dept., dt.26.02.2002.
From the Director of Town and Country Planning, Guntur, Lr.Roc.No.3625/2017/R2,Dated:7.9.2017.
From the Commissioner, PR&RD, Lr.6278/CPR&R/D1/2017, dt.6.11.2017.
***
O R D E R:
In the reference 2nd read above, Director, Town and Country Planning, A.P. in his letter has stated that Sri Guttu Mukkala Venkata Subba Raju R/o China Amiram GP, Bhimavaram (M) West Godavari, in his representation has requested to grant permission for construction of apartment with Stilt+ Ground+ 4 Upper floors in R.S.No.111 of China Amiram Village and GP, Bhimavaram (M), West Godavari in an extent of 3132.88 Sq. Mts since DTCP has rejected the proposal on the ground that it is not having access through the minimum with of 40’-00” wide road as required under Rule 18 (3) of the Andhra Pradesh Gram Panchayat Land Development (Layout and Building) Rules, 2002 and present site under reference is abutting to 30’.0” wide road only and requested to consider the proposal and to issue necessary orders on par with permissibility in urban areas and master plan areas.
2. In the reference 3rd read above, the Commissioner, Panchayat Raj & Rural Development, has reported that the Building Rules in Urban Areas were revised in the year 2007, 2012 and 2017 respectively by the Municipal Administration &Urban Development Department. In the said rules, the minimum wide of the road required for Group Housing/Apartment building up to height 18 Mtrs is only 30 feet i.e 9.00 mtrs. Accordingly, he has requested to consider the following amendment to the Andhra Pradesh Gram Panchayat Land Development (Layout and Building) Rules 2002:
Existing provision in Rule 18 (3) of G.O Ms.No.67, dt: 26.2.2002.
Proposed amendment to Rule 18 (3) of G.O Ms.No.67 ,dt.26.2.2002
Minimum approach road/ Means of Access requirement for residential complexes / all non residential buildings shall be 12 meters.
Minimum approach road/ means of access requirement for residential complexes/all non- residential buildings up to height of 18 meters shall be 9.00 meters.
3. Government after careful examination of the matter, hereby decide to suitable amendment to the Andhra Pradesh Gram Panchayat Land Development (Layout and Building) Rules 2002, issued in G.O.Ms.No.67, Panchayat Raj & Rural Development (Pts.IV) Department, dated 26.02.2002.
4. Accordingly, the following Notification will be published in an Extraordinary Issue of the Andhra Pradesh Gazette, dated:18.04.2018
NOTIFICATION
In exercise of the powers conferred by sub section (1) read with clause (xvii) of sub section (2) of section 268 of the Andhra Pradesh Panchayat Raj Act, 1994. (A.P. Act No.13 of 1994), the Governor of Andhra Pradesh hereby makes the following amendment to the Andhra Pradesh Gram Panchayat Land Development (Layout and Building) Rules, 2002 issued in G.OMs.No.67,PR&RD (Pts.IV) Department, dated:26.2.2002 and as subsequently amended from time to time.
AMENDMENT
In the said rules, in rule 18, for sub-rule (3), the following shall be substitute, namely –
“Minimum approach road/means of access requirement for residential complexes/all non-residential buildings up to height of 18 meters shall be 9.00 meters”.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
Dr.K.S.JAWAHAR REDDY,
PRINCIPAL SECRETARY TO GOVERNMENT
To
The Commissioner, Printing Stationery and Stores Purchase,
AP, with a request to issue the notification and furnish (15) copies of the Andhra Pradesh Gazette to Government. Copy to :
The Director, Panchayat Raj & Rural Development at Vijayawada, Krishna District.
The Director,
Town and Country Planning, Gorantla, Guntur, Andhra Pradesh.
The P.S. to Secretary to CM The P.S. to Minister (PR& RD) All the District Collectors.
All the District Panchayat Officers.
The Law (F) Department.
The P.S. to Prl. Secretary to Govt., PR& RD.
SF/SC.
Cabinet approves Terms of Reference for the Sixteenth Finance Commission Posted On: 29 NOV 2023 2:27PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the Terms of Reference for the Sixteenth Finance Commission.
The Terms of Reference for the Sixteenth Finance Commission will be notified in due course of time. The 16th Finance Commission’s recommendations, upon the acceptance by the government, would cover the period of five (5) years commencing April 1, 2026.
Article 280(1) of the Constitutions lays down that the modalities for setting up of a Finance Commission to make recommendation on the distribution of net proceeds of taxes between the Union and the States, allocation between the States of respective shares of such proceeds; grants- in-aid and the revenues of the States and measures needed to supplement the resources of the Panchayats during the award period.
The Fifteenth Finance Commission was constituted on November 27, 2017. It made recommendations covering the period of six years commencing on 1st April, 2020 through its Interim and Final Reports. The recommendations of the Fifteenth Finance Commission are valid upto the financial year 2025-26.
Terms of Reference for the Sixteenth Finance Commission:
The Finance Commission shall make recommendations as to the following matters, namely:
The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;
The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution for the purposes other than those specified in the provisos to clause (1) of that article; and
The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.
The Commission may review the present arrangements on financing Disaster Management initiatives, with reference to the funds constituted under the Disaster Management Act, 2005 (53 of 2005), and make appropriate recommendations thereon.
The Commission shall make its report available by 31st day of October, 2025 covering a period of five years commencing on the 1st day of April, 2026.
Background:
The Fifteenth Finance Commission (the 15th FC) was constituted on 27.11.2017 for making recommendations for a five-year period of 2020-21 to 2024-25. On 29.11.2019, the ToR of the 15th FC was amended requiring the Commission to submit two reports, namely a first report for financial year 2020-21 and a final report for an extended period of 2021-22 to 2025-26. As a result, the 15th FC made its recommendations for a six-year period from 2020-21 to 2025-26.
The Finance Commission normally takes about two years to make their recommendations. As per the clause (1) of article 280 of the Constitution, the Finance Commission is to be constituted every fifth year or earlier. However, as the recommendations of the 15th FC cover the six-year period up to 31st March 2026, the 16th FC is proposed to be constituted now. This will enable the Finance Commission to consider and appraise the finances of the Union and the States for the period immediately, preceding the period of its recommendations. In this context, it is pertinent to mention that there are precedents where the Eleventh Finance Commission was constituted six years after the Tenth Finance Commission. Similarly, the Fourteenth Finance Commission was constituted five years and two months after the Thirteenth Finance Commission.
The Advance Cell of the 16th FC was formed in Ministry of Finance on 21.11.2022, to oversee preliminary work, pending formal constitution of the Commission.
Thereafter, a Working Group headed by Finance Secretary and Secretary (Expenditure) and comprising of Secretary (Economic Affairs), Secretary (Revenue), Secretary (Financial Services), Chief Economic Adviser, Adviser, NITI Aayog and Additional Secretary (Budget) was set up to assist in formulation of the Terms of Reference (ToRs). As part of the consultative process, views and suggestions were sought from the State Governments and the Union Territories (with legislature) on the ToRs, and were duly deliberated by the Group.
Report of the 16th Finance Commission has to be submitted initially by the end of October,2025, but Government has extended its tenure up to end of November,2025.
Municipal Administration and Urban Development Department –Action Taken Report on the Recommendations of the First State Finance Commission – Orders Issued.
MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT (UBS) DEPARTMENT
In consonance with the Constitutional provisions of the 73rd Amendment Act,1992, and the powers conferred under Article 243-I of the Constitution of India read with sub-section (1) of Section 235 of the Telangana Panchayat Raj Act, 1994, as adapted in Telangana State vide GO.Ms.No.9, PR&RD (Mandal) Dept., Dt:12-09-2014, the Governor of Telangana constituted the First State Finance Commission for the State of Telangana vide GO.Ms.No.31, PR&RD (Pts.III) Deptt., Dt:16-03-2015.
2. Further, as per Article 243Y of Constitution of India the Finance Commission constituted under article 243-I of the Constitution of India read with clause (30) of Section 2 & sub-section (1) of Section 113A of the Telangana Municipalities Act, 2019 shall also review the financial position of the Municipalities and make recommendations to the Governor.
3. Accordingly, the First State Finance Commission has submitted its report with(37) recommendations, out of which (8) recommendations pertains to Financial and (29)recommendations pertains to Non-Financial.
4. Government Vide G.O.Rt.No.299, PR&RD (GPF) Dept., Dt.11.07.2023 have constituted a Committee under the Chairperson of Chief Secretary and 3 Members to examine the recommendations of the First State Finance Commission and to submit the draft Action Taken Report.
5. The Committ ee meeting was held on 08.09.2023 in the chambers of Chief Secretary. During the meeting, recommendations were discussed and accordingly Draft Action Taken Report was prepared.
6. The Draft Action Taken Report on the recommendations of First State Finance Commission have been placed before the Council of Ministers on 04.02.2024 for its approval before placing the same before the State Legislature. The Council of Ministers have approved the Action taken report as in Annexure-I & II.
7. The Departments in Secretariat/HODs noted in the address entries are requested to issue necessary follow up orders or instructions for implementation of these recommendations.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)
M.DANA KISHORE
PRINCIPAL SECRETARY TO GOVERNMENT
Contd.Page.2
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To
The MA&UD / PR&RD, RWS/ TR&B/Revenue (Excise)/ Industries & Commerce Departments.
The Commissioner of Printing Stationary and Store Purchase, Hyderabad
The Commissioner &Director of Municipal Administration, Hyderabad.
[P.T.O.]
//2//
The Commissioner, Greater Hyderabad Municipal Corporation, Hyderabad.
The Commissioner, Hyderabad Metro Water Supply and Sewerage Board, Hyd.
The Commissioner, TSIRD, Hyderabad.
The Commissioner & Inspector General, Registration and Stamps, Hyderabad.
The Commissioner of Transport, Hyderabad.
The Principal Chief Conservator of Forests, Telangana, Hyderabad
The Engineer-in-Chief, Public Health, Hyderabad
All the District Collectors in the State.
All the Additional Collectors Local Bodies in the State
All the Municipal Commissioners of Municipalities in the State
Copy to:
The Principal Accountant General (A&E/Audit-I & II), Hyderabad.
The Director of Treasuries & Accounts, Telangana, Hyderabad.
The Finance and Planning (FW. EXPR. PR.) Department, Telangana Secretariat,Hyderabad.
The Director, Local Fund Audit , Hyderabad.
All Audit Officers in the State.
The Director General, National Institute of Urban Management, Hyderabad
The Director General, MCRHRDI, Hyderabad
The Director, Regional Center for Urban and Environmental Studies, Hyderabad
The G.A.(Cabinet) Department, Secretariat, Hyderabad.
All the Concerned Sections in MA&UD Department.
SF/SC.
// FORWARADED:: BY ORDER//
ASSISTANT DIRECTOR
Contd.Page.3
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Annexures to G.O. Ms. No. 13, MA&UD (UBS) Department, dated 06-02-2024
Annexure- I
Financial Recommendations of the First State Finance Commission (Urban)
Commission recommends to transfer 11% of State Own Net Revenue based on respective Revised Estimates for last financial year, every financial year during the 5 years period commencing from financial year 2020-21 to 2024-25. Here, State Own Net Revenue means Revenue from all Taxes, Duties, Tolls and Fees and including GST compensation if any received from Government of India but minus cost of collecting these revenues which is taken as 1%. Out of this devolution, 61% will be earmarked for Rural Local Bodies (Percentage of Rural population as per Census 2011) and 39% to Urban local bodies.
Decision of the Government:Accepted.
Commission recommends continuation of existing Assigned Revenue of Profession Tax, Seigniorage Fee and Transfer Duty (Entertainment Tax already subsumed in GST) and transfer 95% of each of Assigned revenues to local bodies.
Decision of the Government:Not accepted.
Commission recommends for incurring required expenditure additionally from consolidated fund of the State for Construction of offices for newly created ZPPs,MPPs, GPs and ULBs, over a period of next three years.
Decision of the Government: Accepted.
To ensure equity and take care of local bodies which have very little or no scope in assigned revenues, it is recommended to put all assigned revenues in a divisible pool and divide the revenue among all local bodies based on the formula for division of share in State Own Net Revenue
Decision of the Government:Accepted as this provision is made in the TMA, 2019.
9.5. Formula for Distribution of Revenue among Local Bodie
Decision of the Government:
Will be examined.
9.6. Transfer of Funds in 10 Equal Monthly Installments:
Decision of the Department: Accepted.
Contd.Page.4
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9.8. Revolving Innovation Project Funds for Rural and Urban Local Bodies (referred in
para 9.5 (9) and (11):
Five percent (5%) of funds earmarked for devolution to rural and urban local bodies respectively every year shall be transferred to respective Revolving Funds (non-lapsable fund) at the beginning of each financial year. These two funds will be operated by Commissioner Panchayat Raj and Commissioner and Director Municipal Administration respectively. Respective local bodies can apply upto a maximum of 50% of estimated project cost as interest free loan repayable over 5 years. The projects which directly brings in Cost Reduction or Enhancement of Revenue Generation will only qualify for such loan. In rare case when repayment is delayed, the respective HoD can deduct the installment at source while releasing SFC grant. The respective HoDs may frame appropriate guidelines for operating the fund.
Proposal of the Department: Accepted
M. DANA KISHORE
PRINCIPAL SECRETARY TO GOVERNMENT
Contd.Page.5
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Annexure – II
Non-Financial Recommendations of the First State Finance Commission (Urban)
9.9.2. State Finance Commission subject under Finance Department:
Presently SFC subject is under PR Department. SFC’s main role is to recommend on
financial devolution to PR local bodieslike ZPPs, MPPs and GPs which comes under
Panchayat Raj & Rural Development Department; andUrban LocalBodies which comes
under Municipal Administration & Urban Development Department. Hence it will be
better if SFC subject is brought under Finance Department
Decision of the Department: Accepted.
9.9.3. Timely constitution of SFC every fifth year:
Recommended that SFC must be constituted with its Chairman and Members at least
two years prior to end of current SFC award period so that new award is ready as soon
as current award period ends. SFC must be asked to give its recommendation within
two-year time frame allotted to it and Government must thereafter issue necessary
orders on the recommendations of SFC, as accepted by Government, within 3 months
of the submission of SFC report. It will help local bodies to get their due share from
prevailing States’ Own Tax Revenues.
Proposal of the Department:
Accepted.
9.9.4. Monitoring of implementation of SFC recommendations on regular basis:
Recommended that Government should create an independent Section in Finance
Department for monitoring transfer of Funds to Local bodies and furnish quarterly report
to Chief Secretary. C&AG may also be requested to give its observation on
implementation of SFC recommendations in its annual report to Legislature. This
section in Finance Department will also provide necessary administrative memory for
next SFC. Such arrangement will help in ensuring that local bodies get their due share
of resources in time so as to function as centres of Self Governance.
Proposal of the Department: Accepted
9.9.5. Tax administration and Revision of Taxes, Fees and Water charges bylocal
bodies on annual basis:
Recommended that Taxes, Fee and Water charges etc should be reviewed every year
as part of annual budget exercise and revision if any made, should be made applicable
from 1st of April of that financial year. To ensure that annual exercise is taken up every
year as part of budget exercise, it is also recommended that Local body shall not
increase taxes, Fees and Water charges etc by more than 10%, cumulative, in any one
financial year.
Existing Property Tax Board may be renamed as Local Body Regulatory Board and
activated for suggesting annual revision as part of Budget exercise, in Property tax,
Building Permission Fee, Other taxes, Other Fees and Water Charges etc in addition to
its other functions.
Decision of the Department: Not accepted.
However, the proposed change in nomenclature for the Property Tax Board is
accepted
Contd.Page.6
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9.9.6. Simplification and transparency in levy of Property Taxes:
Local Bodies should explore levy of Property Tax based on Plinth area multiplied by
Standard Property Tax Rate per Sft. for that Road/Area notified by Local Body every
year on the recommendation of Property Tax Board. Such a system will bring certainty
in tax levy and reduce scope for subjectivity in tax levy.
Decision of the Department:
Section 93(1) of the New Municipalities Act, 2019 and rules made thereunder facilitates
capital value based property tax assessment. Hence, the provisions of the Act will be
followed, instead of the recommendations.
9.9.7. Resurvey of all Tax Incident points:
In order to capture all points where Tax is to be levied, local body must do
comprehensive survey of all tax incident points, new and existing, every five years like
revision of electoral rolls. 5% of Survey work should be super checked by senior team
for its correctness and fairness. New electricity connections issued list be obtained from
local DISCOM on monthly basis and cross checked with Property Tax Register for
detecting un-assessed properties on continuous basis. DISCOM may be asked to put
online report on new connections released on their website so that such information can
be accessed by local bodies without any human intervention.
Decision of the Department: Accepted.
9.9.10. Local Bodies to obtain list of Profession Tax Payers from Commercial Tax
Department on annual basis and make annual field survey for detecting un-assessed
cases to bring to the knowledge of Commercial Tax Department.
Decision of the Department: Not accepted.
9.9.11. Rental on Local Bodies Properties:
Recommended that Local Body enter into lease agreement with Lessee for a period not
exceeding five years with absolutely no provisions for its extension. New agreement
should be entered on expiry of lease period based on current rental values prevailing in
the area. Although lease period may be up to five years but lease agreement must have
provision for enhancing rent on 1st April of every year by 5% on rent paid in previous
month i.e. in March month. It will give buoyancy in rental income.
Decision of the Department: Accepted as it is already under implementation.
Contd.Page.7
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9.9.12. Revenue from Parking Fee:
Recommended that Local body should follow Tender cum Auction method with
minimum amount for awarding Parking Contract. Auction should be conducted among
Highest three bidders only. Contract period should not exceed 12 months and no
provision for its extension on any ground. This exercise should be done every year in
the month of January/February so that new contract is made effective from 1st April.
Decision of the Department: Accepted.
9.9.13. Revenue from renting out space for Advertisement: Same procedure as that for
Parking area could be followed.
Decision of the Department: Accepted
9.9.14. Maintenance of Public Conveniences and Facilities on Contract basis:
It is suggested that Local Bodies to explore maintenance of Public Toilets and other
public facilities on Annual Maintenance Contract basis. There should be formal
arrangement for daily inspection of these facilities by appropriate level of staff of Local
Body with endorsement in inspection register and reduction in payment if facility is not
maintained properly. Mobile App for taking feedback from citizens and reduction in
payment to agency based on negative Feedback from Citizens.
Decision of the Department: Accepted
9.9.15. Mechanism for Monitoring and Comparison of Expenditure and Revenue across
Local Bodies:
Decision of the Department: Accepted
9.9.16. Computerisation of Accounts of all Local bodies:
Decision of the Department: It is already under implementation. Accepted.
9.9.17. Computerisation of all Taxes and Fees related activities so that citizen can make
payment of all Taxes and Fees, etc., online.
Decision of the Department: Both assessment and collection of all taxes and fees in ULBs in the State is already computerized. The recommendation is accepted
9.9.18. Transparency in Collection and Utilisation of Resources:
Decision of the Department: Both assessment and collection of all taxes and fees in ULBs in the State is already computerized. Hence, the recommendation is accepted.
Contd.Page.8
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9.9.20. Use of Solar Power:
All local bodies must install Grid Connected solar power plants within 3 years to meet at
least 80% of their power requirements from Solar power. It will help in reducing their
expenditure on Electricity and also protect environment against climate change due to
global warming. They must also move to LED lighting and BLDC fans to conserve
power.
Decision of the Department: Accepted.
9.9.21. Water Meters for all Connections including Public Taps:
To ensure efficient use of scarce drinking water resource, it is recommended that all
water connections must have Water Meters installed even if Local body plans to provide
Free Water to citizens. Water Meter must also be installed for Public Taps to account for
every liter of scarce resource like drinking water.
Decision of the Department: Partially accepted with the decision to install meters for all non-domestic connections.
9.9.22. Safe Piped drinking water for all: It is the first primary duty of any Municipality and Gram Panchayat to provide safe drinking water to all its citizens at their door steps. Hence All local bodies must prepare plan for supplying adequate safe piped drinking water to all citizens at their door steps within next 2 years.
Decision of the Department: Accepted.
9.9.23. Solid Waste Management:
Municipalities and GPs must strive to achieve in next 5 years 100% Solid Waste
Collection from house to house and disposal as suggested above. Wet Waste
composting machines can also be encouraged at Bulk Waste generator level/Resident
Welfare Association (RWA) level by offering incentives or subsidy or reduction in
Property Tax. Local Bodies should also explore engaging the services of reputed third
party on contract basis for collection of segregated waste every day from each house
and from bulk waste generators.
Decision of the Department:
All these activities are being practiced in all ULBs across the State and the statedobjective of 100% achievement in next five years is accepted.
9.9.24. Power generation from Waste:
To generate power from waste even if it is to be subsidised by local body in the interest
of environment and quality of life for its citizens.
Decision of the Department:
It is under implementation in GHMC area. For other ULBs a cluster based approach will
be taken up. Hence accepted.
Contd.Page.9
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9.9.25. Sewerage Line coverage and Recycling of Sewerage water for industrial and
non-drinking water use:
Municipalities and GPs must prepare plan for treating and recycling at least 75% of its
sewerage waste water in next 5 years and 100% in next 10 years.
Decision of the Department:
Accepted.
9.9.26. Public Road maintenance:
Provision of good roads is what citizen expects from local body. Urban Local Bodies
and GPs must have plan in place to re-carpet all main roads every year and all other
roads once in two years.
Decision of the Department:
Not accepted.
9.9.27. Make your city Green:
To combat climate change which is looking very real now and to protect environment
from pollution, all local bodies should plan to increase green cover in their jurisdiction.
Decision of the Department:
Accepted.
9.9.28. Accountability in spending Public Funds / Annual Audit of Local Bodies:
State Government must prepare Calendar for annual audit of all Local bodies such that
all physical visits for annual audits of previous financial year are completed by end of
October month of current financial year and audit reports are communicated to all local
bodies before close of current financial year.
To put in place formal system for regular monitoring of rectification of defects pointed
out in audit. It will require focused and continuous efforts to take up this challenge to
ensure effective and efficient utilization of public resources. Common observations of
audit should also be used as feedback for planning for training the staff in domain
knowledge in that specific area.
Decision of the Department:
Already under implementation. Accepted.
9.9.29. Capacity building of Local Body staff:
Service of TSIRD and MCR HRD Institute, Hyderabad may be utilised to train them
extensively on regular basis. Based on Feedback from Audit reports, special training
programme may also be structured for identified weak areas.