Karnataka's panchayat raj institutions are set to receive a substantial allocation of Rs 18,889 crore under the 16th Finance Commission, as announced by state Panchayat Raj Minister Eshwar Khandre. This significant funding aims to bolster rural local governance and infrastructure development across the state.
Details of the Allocation
The Rs 18,889 crore package will be distributed to various tiers of panchayat raj institutions, including gram panchayats, taluk panchayats, and zilla panchayats. The funds are intended for essential services such as water supply, sanitation, road maintenance, and other civic amenities in rural areas. Khandre emphasized that this allocation is crucial for improving the quality of life in Karnataka's villages.
Pending Dues from 15th Finance Commission
During the announcement, Khandre strongly urged the central government to immediately release the pending Rs 2,186 crore due to the state under the 15th Finance Commission for the financial year 2025-26. He noted that the delay in disbursement has hampered ongoing development projects and affected the financial planning of local bodies. The minister stressed that timely release of funds is essential for uninterrupted implementation of welfare schemes.
Impact on Rural Development
The 16th Finance Commission's allocation is expected to accelerate rural development initiatives in Karnataka. With enhanced financial resources, panchayats can undertake new projects and complete pending works. Khandre highlighted that the funds would be utilized for creating durable assets and improving service delivery at the grassroots level. He also assured that strict monitoring mechanisms would be in place to ensure transparent utilization of the grants.
Government's Commitment
Khandre reiterated the state government's commitment to strengthening panchayat raj institutions. He stated that the allocation under the 16th Finance Commission reflects the Centre's recognition of the importance of local self-government. The minister also called for greater fiscal autonomy for panchayats to enable them to address local needs effectively. He expressed hope that the pending amount from the 15th Finance Commission would be cleared soon to avoid any disruption in development activities.



