Chandigarh, November 17 — The Punjab government has released the first installment of ₹332 crore for rural development works, with Finance Minister Harpal Singh Cheema saying the money has been credited directly to local bodies to ensure quicker execution and transparent use.
According to officials, the transfer covers more than 13,000 Gram Panchayats, 153 Panchayat Samitis and 22 Zila Parishads. The government has divided the amount into two components: ₹156 crore as untied funds that Panchayats can use based on local requirements, and ₹176 crore as tied funds reserved for sanitation, waste management, community toilets and maintaining Open Defecation Free (ODF) status.
Cheema said the direct transfer model is expected to help Panchayats decide whether to take up roads, community centres, drinking water, electrification or other essential works without procedural delays. “The pace of work in a Panchayat will directly determine the quality of basic facilities there,” he noted.
Each Gram Panchayat has received an average of ₹1.76 lakh in the first installment. A second tranche of ₹334 crore is planned by January 2026 or before the end of the financial year, taking the annual allocation to roughly ₹3.52 lakh per Panchayat.
The government said the rollout is part of a larger rural push that includes separate allocations of ₹4,150 crore for repairing 19,000 km of roads and ₹1,000 crore for building sports stadiums across the state. Officials said these steps are intended to address infrastructure gaps in roads, sports, water supply, agriculture support, electricity and health.
A district-wise formula based on population and local needs has been used. Ludhiana received about ₹33.40 crore, followed by Hoshiarpur with ₹28.51 crore and Gurdaspur with ₹27.64 crore. Districts including Sangrur, Patiala, Jalandhar, Firozpur, Fazilka, Moga, SBS Nagar, Sri Muktsar Sahib and Tarn Taran have also received allocations according to their requirements.
The funds have been distributed in a 70:20:10 ratio among Gram Panchayats, Panchayat Samitis and Zila Parishads. Officials said utilisation will be monitored to check irregularities and ensure the money is spent for public works. The transfer process has been digitised to remove intermediaries.
State authorities said the sanitation-linked components are expected to help maintain village cleanliness, waste management systems and ODF conditions. They added that transparent fund flow and periodic audits will remain a key part of the implementation cycle.
