New Delhi, July 3 The Ministry of Panchayati Raj clarified on Wednesday that the Centre has released Rs 5,337 crore, as on June 28, as 15th Finance Commission grants to the gram panchayats in Kerala for 2020–21 to 2026–27.
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 for the years 2020-21 to 2023-24.
However, as per the recommendations of the 15th Finance Commission, it is mandatory for the states to constitute State Finance Commissions Act upon their recommendations and lay the explanatory memorandum as to the actions taken thereof before the State Legislature on or before March 2024.
After March 2024, no grants will be released to the state that has not complied with the Constitutional provisions in respect of the state finance commission and these conditions.
The Ministry has in its letter dated June 11 and June 24 requested the states to provide the details of State Finance Commission.
The state government has submitted its Grant Transfer Certificate (GTC) of second installment of Untied Grants for FY 2023-24 vide letter dated June 7.
The GTC is being examined by the Ministry of Panchayati Raj and being recommended for the release of the next installment (1st Installment for FY 2024–25) to the Ministry of Finance.
However, as of June 28, the Ministry is yet to receive a reply from Kerala furnishing details of the State Finance Commission, which is a mandatory condition for release of grants after March 2024.
The Ministry said the clarification has been issued in response to reports in some sections of Kerala media which alleged negligence on the part of the Central government in releasing the 15th Finance Commission Grants to the gram panchayats in Kerala.
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