Key Highlights
- Jharkhand could not receive around Rs. 700 crore from the final instalment of the 15th Finance Commission.
- The State was required to submit Utilisation Certificates (UCs) and Grant Transfer Certificates within the prescribed deadline.
- Officials said the department had received the previous funds in December 2025, leaving limited time to complete the process before March.
- The grant was meant for village level works such as drainage, drinking water, sanitation, roads and streetlights.
- Jharkhand was to receive around Rs. 2,700 crore in the final two years of the 15th Finance Commission period but received about Rs. 2,000 crore.
- The State Government has sought the Centre’s support, but officials now expect the pending funding to be taken up under the 16th Finance Commission.
Ranchi: Jharkhand has missed out on around Rs. 700 crore that was to be released as the final instalment of the 15th Finance Commission grant for panchayat development. The funds could not be released after the state failed to submit the required utilisation and grant transfer certificates within the stipulated period, leaving several village-level development works without the expected funding.
Short Deadline Delayed Release of Funds
According to officials, the department received the previous instalment in December 2025 and was required to submit the utilisation certificate by March to qualify for the final release. With only a few months available, the necessary documentation could not be submitted within the prescribed timeframe. The Centre subsequently did not release the final amount. The State Government continued to write to the Centre seeking the funds, but the pending amount was not released.
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Village Works Face Funding Constraints
The 15th Finance Commission grants are used by panchayats for relatively small but essential works, including drain construction, drinking water facilities, sanitation, drainage, repair of rural roads and streetlights. Several projects sought by villagers could not be taken up because of the shortage of funds. The issue is significant at the panchayat level, where such grants often finance basic infrastructure that falls between larger state and centrally funded projects.
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The 15th Finance Commission covered the 2021-2026 period, with around Rs. 6,585 crore earmarked for development in Jharkhand’s three tier Panchayati Raj institutions over different years. Funds were released in two instalments each year. In the final two years, the state was expected to receive around Rs. 2,700 crore, but only about Rs. 2,000 crore was received, leaving Rs. 700 crore pending.
State Looks to 16th Finance Commission
Rural Development and Panchayati Raj Secretary Manoj Kumar said the department had completed the required process and sought the release of the remaining funds from the Centre, but the money was not received. The State’s rural development minister and secretary have also requested the Centre to release the amount so that the funds can be used for pending works. However, with the 15th Finance Commission period now over and the 16th Finance Commission in place, the department expects the required funding to be pursued through the new commission.
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