Kerala govt. sanctions ₹312 cr. more for addressing imbalance in urban-rural allocation

The Kerala government announced on Wednesday that it will provide an additional ₹312 crore to rectify the imbalance caused by the urban-rural allocation disparity recommended by the 16th Union Finance Commission (UFC). Chief Minister V.D. Satheesan made the announcement during a post-Cabinet press briefing. The first tranche of ₹2,029.15 crore for local bodies' projects in the 2026-27 fiscal year was sanctioned by the government.

Satheesan highlighted that the previous Left Democratic Front (LDF) government did not approve the third installment of the fund. To bridge the gap, the current administration plans to release ₹136 crore to municipalities and ₹188 crore to corporations for overflow projects and initiatives. In June, the 7th State Finance Commission brought to light the disparity between the 16th UFC allocations for Kerala's urban population and the actual distribution of population between urban and rural local governments.

The UFC grants to municipalities and corporations were significantly higher than those given to rural governments, according to the SFC. Retired judge C.N. Ramachandran Nair has been chosen as the Chairperson of the Police Complaints Authority. The government will also distribute financial assistance from the Chief Minister's Distress Relief Fund to 248 beneficiaries in Thrissur district who lost their homes during the 2024 rain havoc.