PANAJI
Goa’s rural local bodies have paid a heavy price for persistent administrative lapses, with the 16th Finance Commission slashing panchayat funding by more than 50 per cent for the five-year period ending 2030-31. The sharp cut follows the State government’s failure to ensure submission of utilisation certificates and audited accounts by village panchayats, a mandatory condition for the release of central grants.
Against an allocation of Rs 368 crore for rural local bodies (RLBs) under the 15th Finance Commission, the 16th Finance Commission has earmarked only Rs 174 crore for the next five-year cycle. The funding squeeze is further compounded by the Centre withholding Rs 168 crore allocated to Goa under the 15th Finance Commission, which has remained pending since 2022-23.
Data from the Union Ministry of Panchayati Raj reveals that under the 15th Finance Commission period (2020–26), the Centre has released only about 54 per cent of the total allocation to Goa’s panchayats -- Rs 200 crore out of Rs 368 crore. No grants have been released for the financial years 2023-24, 2024-25 and the ongoing year so far, despite allocations of Rs 58 crore, Rs 62 crore and Rs 61 crore respectively.
Sources said the delay is entirely procedural. “The Centre takes into account several compliance factors before releasing grants. Despite repeated reminders and corrective steps, the panchayats have consistently failed to submit utilisation certificates and account audits. Without this data, there is no scope for release of funds,” sources explained.
Rural local bodies received their full allocation only in the initial years of the 15th Finance Commission. In 2020-21, panchayats received Rs 75 crore, followed by Rs 55 crore in 2021-22. Thereafter, releases fell sharply. In 2022-23, only Rs 48.46 crore was released against an allocation of Rs 57 crore. In 2023-24, the State received Rs 21.55 crore as of December 2024, far below the allocated Rs 58 crore.
Since then, no fresh release orders have been issued for Goa, even as almost all other States received at least the first instalment for the current financial year.
As per Finance Commission norms, 90 per cent of the grants are classified as basic grants and 10 per cent as performance-based grants. These funds are meant to support essential services such as water supply, sanitation, sewerage, solid waste management, stormwater drainage, maintenance of roads, street lighting, community assets, burial and cremation grounds, and other core functions entrusted to panchayats under law.
A look at earlier Finance Commission cycles shows a mixed record. During the 14th Finance Commission (2015–20), Goa received Rs 125.98 crore out of a total allocation of Rs 133.76 crore for rural local bodies. However, performance during the 13th Finance Commission (2010–15) was particularly poor, with only Rs 10.49 crore released — just about 10 per cent of the Rs 91.55 crore earmarked.
