UP: First installment of Rs 1000 crore released to Panchayats, funds will go directly into accounts, instructions for strict monitoring of expenditure

Lucknow, Read: The state government has released the first installment of Rs 1000 crore to the Panchayati Raj institutions for the month of April under the financial year 2026-27. Based on the recommendations of the Fifth State Finance Commission, this amount will be distributed among the district, block and gram panchayats in the prescribed ratio.

According to the government order issued on Monday, out of the total provision of Rs 12,000 crore, Rs 1000 crore has been approved for the month of April. Gram Panchayats have got the biggest share in this, which will be given Rs 700 crore. Whereas Rs 150-150 crore have been allocated to District Panchayats and Block Panchayats. The government has clarified that this amount will be transferred directly from the treasury to the accounts of the respective Panchayats. The amount will not be allowed to be retained in the bank account at any stage. It has also been instructed that the funds will be used only for the prescribed works and no adjustment will be allowed for any other item.

The mandate also states that the utilization of funds will be regularly reviewed and the concerned officers will be accountable for it. It has also been made mandatory to provide information about withdrawal to the government within a week. This decision is expected to give impetus to the development works at the Panchayat level, especially in rural areas, expansion of infrastructure facilities and implementation of local schemes.