The Government of Kerala has released ₹213.43 crore to local self-governments as the third instalment of the general purpose grant for the financial year 2025–26. The allocation is aimed at strengthening grassroots governance and ensuring the continuity of essential civic services and infrastructure maintenance.
Finance Minister K.N. Balagopal announced the distribution of the funds, underscoring the government’s commitment to empowering decentralised governance. As per the allocation details, grama panchayats will receive the lion’s share of ₹150.23 crore, followed by ₹25.83 crore for municipalities, ₹18.25 crore for Corporations, ₹11.23 crore for block panchayats, and ₹7.89 crore for district panchayats.
The Finance Minister noted that these grants are intended to support the uninterrupted delivery of basic services, maintenance of public infrastructure, and the execution of ongoing development schemes. “This fund will enable local bodies to carry out essential activities such as maintenance of schools, hospitals, roads, and public spaces, thereby directly impacting the quality of life of citizens,” he said.
This latest instalment builds upon the state government’s substantial financial support to local bodies during the initial months of the 2025–26 fiscal year. In April and May alone, a total of ₹4,265 crore was released. This included ₹2,150 crore as the first instalment of the development fund, ₹78 crore as untied funds, ₹1,396 crore for the first instalment of the maintenance fund, and three earlier instalments of the general purpose grant.
Kerala’s local self-governments have long been recognised for their active role in implementing welfare schemes and development projects at the grassroots level. The timely disbursal of funds is seen as crucial for sustaining this model of participatory governance, particularly at a time when many local bodies are grappling with rising operational costs and increasing demand for public services.
Experts in public finance have lauded the state’s continued commitment to decentralisation. “Kerala has consistently led the way in empowering local governments, and regular funding releases like this one underscore the government’s intent to make local governance more responsive and effective,” said a senior official from the State Planning Board.
The Finance Minister also highlighted that the government will closely monitor the utilisation of the funds to ensure transparency and accountability. Local bodies are expected to use the funds judiciously and submit regular progress reports to the State Finance Commission.
The state’s approach towards empowering panchayati raj institutions and urban local bodies with timely and adequate financial support is expected to yield significant dividends in service delivery and development outcomes in the coming months.
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