Central Government Withholds Rs 600 Crore Grant to Kerala Over Incomplete Financial Data

The central government has reportedly withheld the second installment of the 15th Finance Commission recommended grants to Kerala, amounting to Rs 600 crore, citing incomplete financial data provided by the state. This fund was intended to support rural local bodies in crucial development activities. While the Centre had previously released Rs 3,774 crore based on the 14th Finance Commission’s recommendations, the release of the additional grant is contingent on the utilization of the earlier funds or the submission of an affidavit detailing the expenditure. The delay in providing the necessary financial data and the affidavit has led to the withholding of the funds, impacting developmental activities in Kerala.

This move by the central government underscores the significance of timely and accurate financial reporting by states to access recommended grants. The lack of transparency or delay in providing essential financial information can hinder the flow of funds, impacting crucial developmental projects and initiatives in the respective states.