Parliament Question: Suspension of Finance Commission Grants to cantonment boards

GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE RAJYA SABHA UNSTARRED QUESTION NO. 1015 TO BE ANSWERED ON 09th February, 2026 SUSPENSION OF FINANCE COMMISSION GRANTS TO CANTONMENT BOARDS 1015. SHRI MAHENDRA BHATT: Will the Minister of Defence be pleased to state: (a) whether Government is aware of the fact that due to non-holding of elections to cantonment boards for a long time, the grants by the Finance Commission to these boards have been suspended; (b) whether Government is considering holding elections to the cantonment boards, or merging them with the municipal bodies of the civilian areas is being considered; (c) whether Government will continue to release the amount of grant being given to these cantonment boards until a decision is taken on this matter; and (d) if not, the reasons therefor? A N S W E R MINISTER OF STATE (SHRI SANJAY SETH) IN THE MINISTRY OF DEFENCE (a) It is informed that in the current year, 29 Cantonment Boards have already received the funds under the Central Finance Commission (CFC) grants. Only in the case of Cantonment Boards situated in the state of Uttarakhand, non conduct of elections in the Cantonment Boards has been cited as one of the reasons for non-receipt of CFC grants. Matter has already been taken up with the Uttarakhand Govt for release of grants to these Cantonment Boards. (b) It has been decided in-principle, to excise the civil areas from select Cantonments and merge them with the adjoining State Municipalities. Since the outcome of excision exercise may have a bearing on the governance structure of Cantonment Boards, elections to Boards have not been conducted. The matter is also presently subjudice before Hon’ble High Courts of Delhi, Telangana and Madhya Pradesh. (c) & (d) Cantonment Boards are receiving funds under the CFC grants. Till date, 29 Cantonment Boards have already received funds during current financial year. *****