Deputy CM Vijay Sharma attends national workshop in New Delhi as Centre discusses roadmap for financially stronger Panchayats and improved rural governance
TFP Bureau, Raipur/New Delhi, July 4,2026: Chhattisgarh will receive ₹11,664 crore in grants for rural local bodies over the five-year period from 2026-27 to 2030-31 under the recommendations of the 16th Finance Commission, providing a major financial boost to Panchayats for strengthening infrastructure, civic services and grassroots governance.
The grant details were shared during a national workshop on the 16th Finance Commission recommendations held in New Delhi, where Deputy Chief Minister and Panchayat and Rural Development Minister Vijay Sharma represented the state. The workshop was attended by Panchayat and Rural Development ministers from several states, senior government officials and policymakers.
The deliberations focused on strengthening the financial capacity of rural local bodies, ensuring effective implementation of the Finance Commission’s recommendations and improving the allocation of resources to Panchayats. Participants also discussed measures to enhance financial autonomy, transparency, accountability and service delivery, while making the performance-based grant mechanism more effective.
Sharma participated in technical sessions covering key aspects of Panchayat administration and rural development and reviewed presentations on governance reforms and financial management at the grassroots level.
Under the Commission’s recommendations, Chhattisgarh has been allocated a total grant of ₹11,664 crore, comprising ₹9,331 crore as a basic grant and ₹2,333 crore as a performance grant. The state’s share in the inter-state distribution of grants for rural local bodies has been fixed at 2.68 per cent.
The proposed annual allocation includes a basic grant of ₹1,498 crore in 2026-27. In 2027-28, the state is expected to receive ₹1,663 crore as a basic grant and ₹248 crore as a performance grant. The allocation for 2028-29 includes ₹1,846 crore as a basic grant and ₹624 crore as a performance grant, followed by ₹2,049 crore and ₹693 crore, respectively, in 2029-30. For 2030-31, the Commission has proposed a basic grant of ₹2,275 crore along with a performance grant of ₹768 crore.
Officials said the funds will be utilised through Gram Panchayats and other rural local bodies for the development of basic infrastructure, expansion of civic amenities and implementation of rural development projects. The financial support is expected to strengthen local self-governance and accelerate inclusive development across rural Chhattisgarh.
