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Centre says sufficient funds released to gram panchayats in Kerala; refutes negligence reports

It said India has released Rs 3,774.20 crore as the 14th Finance Commission grants and Rs 5,337 crore (as of June 28, 2024) as the 15th Finance Commission grants to the gram panchayats in Kerala.

Centre says sufficient funds released to gram panchayats in Kerala; refutes negligence reports

Photo: Ministry of Finance (X/@FinMinIndia)

The Union Government on Wednesday said that it has released sufficient funds to gram panchayats in Kerala, refuting allegations of negligence in releasing the 15th Finance Commission grants.

It said India has released Rs 3,774.20 crore as the 14th Finance Commission grants and Rs 5,337 crore (as of June 28, 2024) as the 15th Finance Commission grants to the gram panchayats in Kerala.

For the 15th Finance Commission period, the funds were released to Kerala in the form of Untied (Basic) and Tied grants to rural local bodies, it added.

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The Union government also highlighted some of the conditions required as per the recommendations of the 15th Finance Commission.

These conditions include the mandatory requirement for the states to constitute a State Finance Commission (SFC), act upon their recommendations, and present an explanatory memorandum regarding the actions taken thereof before the state legislature on or before March 2024.

Post March 2024, no grants shall be released to the state that has failed to comply with the constitutional provisions regarding the SFC and these conditions, it said.

Notably, the Ministry of Panchayati Raj, vide a letter dated 11th June 2024 and 24th June 2024, has requested the states to provide the details of the State Finance Commission.

As per the information shared by the central government, the state government has submitted its Grant Transfer Certificate (GTC) for the second instalment of the Untied Grants for the FY 2023-24 vide a letter dated 7th June 2024.

The said GTC is being examined by the Ministry of Panchayati Raj and is being recommended for the release of the next instalment (1st instalment for FY 2024–25) to the Ministry of Finance.

However, as of 28th June 2024, the Ministry has not yet received a reply from Kerala furnishing details on the State Finance Commission, which is a mandatory requirement for the release of grants after March 2024.

 

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