The union government has not yet released the second installment of the 15th Finance Commission recommended grants to Kerala government.
According to union government sources in the knowledge of the matter, the fund has been blocked over incomplete financial data furnished by the state.
As a result, Kerala is devoid of Rs 600 crore meant to ensure additional funds to rural local bodies in footing various critical development activities.
It may be noted that the Centre earlier released Rs 3774 crore based on the 14th Finance Commission recommended grants. This needs to be utilised completely for the release of the 15th Finance Commission recommended grants. Or if the reserve of previous grants is only 10 percent of the total amount granted, then the Centre will release new grants. However, an affidavit regarding the utilisation needs to be framed.
According to reports, Kerala has not yet submitted the affidavit of the fund utilized.
The Centre released the first installment of the 15th Finance Commission recommended grants was released in last August.
The Ministry of Panchayati Raj had intimated the state government multiple times for the financial data. The state government reportedly failed to furnish the expense certificate. Sources also claimed that the state did not take any procedures to make available the remaining data it sought.