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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION NO-1340
ANSWERED ON- 27/07/2026
ALLOCATION OF FUNDS TO KERALA UNDER THE 16th FINANCE COMMISSION
1340. Adv Dean Kuriakose:
Will the Minister of FINANCE be pleased to state:
(a) the details of the total funds allocated to the State of Kerala as per the devolution of funds under
the 16th Finance Commission, year-wise;
(b) the details of the funds actually released to the State of Kerala against the allocated amount
under the above recommendations, year-wise; and
(c) whether any amount remains pending for release to the State of Kerala under the 16th Finance
Commission and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b): The Union Government vide Explanatory Memorandum as to the Action Taken on the
Recommendations made by the Sixteenth Finance Commission (16th FC) in its Report for the
award period 2026-27 to 2030-31 has inter-alia accepted the recommendations for States’ Share
in Central Taxes and grants-in-aid, viz Local bodies grants and Disaster management grants.
Accordingly, the recommendations of the 16th FC are being implemented from 1st April, 2026. As
per the accepted recommendations of the 16th FC, the B.E. 2026-27 for devolution of shareable
taxes and duties to the State of Kerala is ₹ 36,355.39 crore, of which ₹ 8,869.49 crore has been
released till 10.07.2026. Releases for the remaining period of the Finance Commission Cycle will
be made in the respective Financial Year.
(c): Ministry of Finance, Department of Expenditure releases Central Finance Commission
recommended grants-in-aid to States on the recommendations of the Nodal Ministries concerned,
subject to fulfilment of stipulated conditions associated with each component of the recommended
grants-in-aid. As far as release of FY 2026-27 is concerned, no proposal from the Nodal
Ministry(ies), is pending for release of grants-in-aid to the State of Kerala.
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