Lucknow: The Cabinet also approved a proposal relating to the financial requirements of Panchayati Raj Institutions. Accordingly, a provision of Rs 14,988.50 crore has been made under the State Finance Commission for Panchayats at all three tiers during the financial year 2026-27. Ten percent of this amount, approximately Rs 1,498 crore, will be spent on administrative, operational, and maintenance expenses. Out of this amount, Rs 495.89 crore will be spent on honorarium and meeting allowances for Panchayat representatives.
It is noteworthy that directions have been issued to withhold 1.05 percent of the funds received by Panchayats at all three tiers from the State Finance Commission at the Directorate level for expenditure on the Swachh Bharat Mission (Gramin) and on honorarium for Finance Commission personnel, as well as technical, administrative, civil, and other essential requirements.
Accordingly, approximately Rs 157.38 crore is estimated to be spent under the Swachh Bharat Mission (Gramin) and the Finance Cell constituted under the Finance Commission on the honorarium of personnel working at the state, division, district, and development block levels, as well as on technical, administrative, and other essential requirements. This amounts to approximately 1.05 percent of the current State Finance Commission instalment of Rs 14,988.50 crore and is in accordance with the Government Order dated December 12, 2024. This amount will be utilised in accordance with the rules and as required under the directions of the Director, Panchayati Raj.
