The Government of India has released ₹3,774.20 crore as 14th Finance Commission grants and ₹5,337 crore (as on June 28, 2024) as 15th Finance Commission grants to grama panchayats in Kerala, according to the Centre.
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On Friday, Local Self-Governments Minister M. B. Rajesh had blamed the Centre for poor fund allocation to local bodies, during a heated exchange between LDF and UDF while the latter moved a notice for an adjournment motion in the State Assembly.
Responding to the charge, the Centre said in a statement that for 15th Finance Commission period, the funds were released to Kerala in the form of Untied (Basic) and Tied grants to rural local bodies. It noted that the State government has submitted its Grant Transfer Certificate (GTC) of the second installment of united grants for 2023-24.
However, as on June 28, the Ministry is yet to receive a reply from Kerala on furnishing details on the State Finance Commission, a mandatory condition for release of grants after March 2024. In June, the Ministry had requested the States to provide the details of the State Finance Commission.
As per the recommendations of 15th Finance Commission, it is mandatory for the States to constitute SFCs. After March 2024, no grants shall be released to States that have not complied with the Constitutional provisions in respect of the SFC and these conditions, the Centre noted.