For the period of 15th Finance Commission, funds were released to Kerala as untied (Basic) and tied grants to rural local bodies for the years 2020-21 to 2023-24.

However, as per the recommendations of the 15th Finance Commission, it is mandatory for the States to enact a State Finance Commission Act on its recommendations and lay an explanatory memorandum of the actions taken before the State Legislature on or before March 2024.

No grant will be released to a State which does not comply with the constitutional provisions and these conditions regarding State Finance Commission after March 2024.

The ministry, in its letters dated June 11 and June 24, has requested the states to provide details of the State Finance Commission.

The state government has submitted its Grant Transfer Certificate (GTC) of the second installment of untied grant for the financial year 2023-24 through its letter dated June 7.

The GTC is being examined by the Ministry of Panchayati Raj and recommended for release of the next installment (1st installment for FY 2024-25) to the Finance Ministry.

However, as of June 28, the ministry has yet to receive a reply from Kerala furnishing details of the State Finance Commission, which is a mandatory condition for releasing the grants after March 2024.

The ministry said the clarification has been issued in response to reports in some sections of the Kerala media alleging negligence on the part of the central government in releasing 15th Finance Commission grants to gram panchayats in Kerala.