Rs 5337.00 crore as 15th Finance Commission grants to Panchayats in Kerala (2020–21 to 2026–27)

OV Desk

Ref. is invited to reports in some sections of Kerala media. On alleged negligence of Central Government for releasing the 15th Finance Commission Grants to the Gram Panchayats in Kerala. The Ministry of Panchayati Raj points out following:

(i)     The Government of India has released Rs 3774.20 crore as 14th Finance Commission grants to Gram Panchayats (2015–16 to 2019–20) and Rs 5337.00 crore (as on 28.06.2024) as 15th Finance Commission grants to these Panchayats (2020–21 to 2026–27) in Kerala.

(ii)    For 15th Finance Commission period, the funds were released to Kerala in the form of Untied (Basic) and Tied grants to rural local bodies. A detailed year-wise summary of allocation and release under 15th Finance Commission is as per Table 1 below:

Table 1

Status of allocation and release of Fifteenth Finance Commission funds to the State of Kerala for Rural Local Bodies

(Rs. in crore)

Sl. No. Year Untied Grant Tied Grant Total
Allocation Release Allocation Release Allocation Release
1 2020–21 814.00 814.00 814.00 814.00 1628.00 1628.00
2 2021–22 481.20 481.20 721.80 721.80 1203.00 1203.00
3 2022–23 498.40 498.40 747.60 747.60 1246.00 1246.00
4 2023–24 504.00 504.00 756.00 756.00 1260.00 1260.00


(iii)   As per the recommendations of 15th Finance Commission, it is mandatory for the States to (a) constitute State Finance Commission (SFC) (b) act upon their recommendations and (c) lay the explanatory memorandum as to the actions taken thereof before the State Legislature on or before March 2024. After March 2024, no grants shall be released to the State that has not complied with the Constitutional provisions in respect of the SFC and these conditions.

(iv)   The Ministry, vide its letter dated 11th June, 2024 and 24th June, 2024 has requested the States to provide the details of State Finance Commission.

(v)    The State Government has submitted its Grant Transfer Certificate (GTC) of second installment of Untied Grants for FY 2023-24 vide letter dated 7th June 2024. The said GTC is being examined by the Ministry of Panchayati Raj and being recommended for the release of next installment (1st Installment for FY 2024–25) to the Ministry of Finance. However, as on 28th June 2024, the Ministry is yet to receive a reply from Kerala furnishing details on State Finance Commission, which is a mandatory condition for release of grants after March 2024.

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