Performance Grants to Gram Panchayats and Municipalities

Additional discretionary untied Performance Grant to 941 Gram Panchayats and 87 Municipalities to allow increases in their development spending and in discretion in choosing public services including maintenance of infrastructure.

Current Status

Utilisation of Performance Grant

Total Project Cost (WB Share) 200 million USD
Revised Project Cost 190.2 million USD
Funds received upto 29.12.2017 182.83 million USD

Release of Funds Vs Utilisation

                                                                                             In Crore

Total funds released upto 30.11.2017 Rs.1564.66
Utilisation upto 30.11.2017 Rs.1523.01
Percentage of utilisation 97.34%

Release and Utilization of Performance Grant

 The Performance Grant is divided into two phases

  • Phase-1 -2011-13
  • Phase-II -2013-15
  • The Project has received Rs.368.66 crore (173.34 crore from WB and 195.32 crore from GoK) due to exchange rate fluctuation and corresponding State Share. Out of this, the Project has supported with Rs.2 crore each to 40 backward Grama Panchayats, 10 Grama Panchayats in tribal clusters and 10 revenue deficit municipalities.

During Phase 1 ie; financial years 2011-12 and 2012-13 performance grant was released subject to some basic fiduciary conditions as getting “clean” audit certificate and submission of approved copy of the annual plans. LSGIs except two cleared these conditions during these years and PG was released to them except the following LSGIs.

During Phase II 1 i.e., financial years 2013-14 and 2014-15 Performance Grant was released based on the eligibility assessed through Annual Performance Assessment (APA). Accordingly APA for 2013-14 as conducted and the performance grant was released to 898 Grama Panchayats and 39 Municipalities. For 2014-15 APA was conducted and the performance grant was released to 848 Grama Panchayats and 46 Municipalities. For the financial year 2016-17, APA was conducted and 834 Grama Panchayats and 64 Municipalities have qualified for the performance grant.