Ranchi: Jharkhand’s panchayats have received a record ₹2,254 crore from the 15th Finance Commission for the financial year 2025-26, marking the highest allocation since the state’s formation. The substantial funding is expected to accelerate rural development and infrastructure across the state’s villages.
Massive Boost for Rural Development
The funding will benefit 4,345 panchayats in Jharkhand, providing each panchayat with approximately ₹51.8 lakh on average. This unprecedented allocation is poised to drive significant growth in previously underfunded and backward villages, enabling better infrastructure, services, and overall quality of life in rural areas.
Rural Development and Panchayati Raj Minister Deepika Pandey Singh stated that this funding aligns with the vision of Mahatma Gandhi, who emphasized that the soul of India lies in its villages. She highlighted that the allocation will empower villages and transform their socio-economic landscape.
Allocation Over the Years
Over the years, Jharkhand has steadily received funding from successive Finance Commissions, but the allocation for the financial year 2025-26 stands out as the highest ever. Key highlights include:
- 2021-22: ₹624.50 crore
- 2022-23: ₹1,271 crore
- 2023-24: ₹1,300 crore
- 2024-25: ₹653.50 crore
- 2025-26: ₹2,254 crore
This brings the total allocation over all years to ₹6,103 crore. Notably, this year marks the first time that the State Finance Commission has provided grant allocations directly to the panchayats, representing a significant milestone in decentralized governance and financial empowerment for rural communities across Jharkhand.
Regional Distribution of Funds
The total allocation has been divided across Jharkhand’s five divisions as follows:
- Northern Chotanagpur Division – ₹767.15 crore
- Santhal Pargana Division – ₹520.59 crore
- Southern Chotanagpur Division – ₹367.78 crore
- Kolhan Division – ₹300.44 crore
- Palamu Division – ₹294.74 crore
This equitable distribution ensures that all regions receive the necessary financial support for development projects, including infrastructure, education, healthcare, and rural livelihoods.
Challenges Overcome to Secure Funding
Minister Deepika Pandey Singh noted that securing Jharkhand’s share from the 15th Finance Commission involved extensive coordination and persistent efforts. Over the past year, multiple rounds of correspondence and advocacy ensured that the state’s panchayats received the maximum possible allocation.
“The receipt of ₹2,254 crore is truly unprecedented and will bring transformative changes in villages across Jharkhand,” the minister added.
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