Chandigarh, Oct 10 (IANS) The Haryana Cabinet, presided over by Chief Minister Nayab Singh Saini here on Saturday, approved the continuation of the recommendations of the Sixth State Finance Commission for the devolution of funds to rural and urban local bodies from 2026-27 until the recommendations of the next Finance Commission come into force.
The decision has been taken as the Seventh Finance Commission has not yet submitted its report to the government. Accordingly, as per the established precedent, the approved recommendations of the Sixth State Finance Commission will continue to serve as the basis for the distribution of funds to local bodies during this period.
Under the approved framework, seven per cent of the state’s Own Tax Revenue (SOTR), on an actual basis, will be devolved to local bodies. The distribution of funds to Gram Panchayats and Urban Local Bodies will be based on a weightage of 80 per cent for population and 20 per cent for area. For Zila Parishads and Panchayat Samitis, the distribution will also be based on population data available on the Parivar Pehchan Patra Portal as of December 31 of each year. The ‘inter-se’ distribution among Gram Panchayats, Panchayat Samitis and Zila Parishads will be maintained in the ratio of 75:15:10, respectively.
As per the approved framework, the local bodies will be permitted to utilise not more than 30 per cent of the devolved funds for pavement of streets. The framework also stipulates that the actual revenue of Urban Local Bodies must be at least 85 per cent of their budgeted revenue, as reflected in the audited accounts of the previous year. In case of non-compliance, the Urban Local Bodies concerned will face a 20 per cent reduction in their recommended share of the state Finance Commission grant due to them in the current year.
The Cabinet also approved key amendments to the Deen Dayal Lado Lakshmi Yojana to extend the benefits of the scheme to more eligible women, simplify its implementation and strengthen the delivery of financial assistance. Under the approved amendments, the annual family income eligibility limit under the scheme will be increased from Rs 1 lakh to Rs 1.80 lakh.
The scheme aims to promote women’s empowerment by strengthening their financial independence and providing social security. At present, more than 10 lakh women are benefiting from the initiative.
–IANS
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