Centre Clears Release of 15th Finance Commission Funds for State

The release of long-pending funds under the 15th Finance Commission has received clearance, offering much-needed relief to local bodies across the state. The Centre has informed the state government that a portion of the pending grants will be released before the end of this month.

According to official communication, at least ₹1,000 crore will be released shortly from the total ₹2,500 crore due to Gram Panchayats. The remaining amount is expected to be disbursed in the coming month.

Guidelines Issued for Fund Utilisation

In anticipation of the release, the Panchayat Raj and Rural Development Department has issued detailed guidelines on the utilisation of the 15th Finance Commission funds. Memos have been circulated to all districts, making it mandatory to follow a fully digital process for fund usage.

Officials have been instructed to ensure strict compliance with the new system before accessing the grants.

Separate Bank Account for Every Gram Panchayat

As per the guidelines, each Gram Panchayat must operate a dedicated bank account exclusively for the 15th Finance Commission funds. This account must be registered on the Public Financial Management System (PFMS) portal to obtain a unique agency code.

In addition, the bank account details must be uploaded on the e-Gram Swaraj portal, which will serve as the primary platform for monitoring transactions.

Digital Approval and Signature Process

Under the prescribed system, the Deputy Sarpanch will act as the maker, while the Sarpanch will function as the checker. Their digital signatures must be registered on the e-Gram Swaraj portal and approved through the respective MPDOs.

The guidelines specify that Class-3 Digital Signature Certificates are mandatory, along with signing and encryption facilities and a USB token.

Funds Only After Digital Compliance

The Panchayat Raj Department has made it clear that Gram Panchayats will be allowed to utilise the 15th Finance Commission funds only after completing all digital formalities.

To ensure smooth implementation, Panchayat Raj Commissioner Shruti Ojha has directed district panchayat officials to procure the required digital signatures through the GeM portal, e-procurement system, or other approved tender processes.