Lagatar24 Desk
Ranchi: The central government has released ₹275.12 crore to Jharkhand under the recommendations of the 15th Finance Commission, providing the state with untied funds that can be spent as per local development priorities.
Untied Funds Credited to State Account
The amount, equivalent to ₹27,512.53 lakh, has been released with instructions to the Reserve Bank of India to transfer it directly to the Jharkhand government’s account. As untied funds, the state has flexibility to utilise the money based on sectoral needs without strict central restrictions.
Utilisation Through Local Bodies
The released funds will be utilised through 4,342 gram panchayats, 253 panchayat samitis, and 24 district councils. Due to conditions set by the central government, the amount cannot be spent in three gram panchayats and 11 panchayat samitis. Jharkhand currently has a total of 4,345 gram panchayats and 264 panchayat samitis.
Basis of Fund Distribution
The allocation between rural and urban local bodies will be based on the 2011 Census population data. In the distribution formula, population carries a weightage of 90 percent, while geographical area accounts for the remaining 10 percent. For rural areas, the distribution among three-tier Panchayati Raj institutions will follow the recommendations of the State Finance Commission.
Transfer Timeline Mandated by Centre
Along with releasing the funds, the central government has directed that the amount must be transferred to Panchayati Raj institutions and urban local bodies within 10 working days, ensuring timely utilisation for development works.
