Kerala govt. sanctions ₹312 cr. more for addressing imbalance in urban-rural allocation

The State government has sanctioned an additional ₹312 crore for addressing the “imbalance” created by a mismatch in urban-rural allocations recommended by the 16th Union Finance Commission, Chief Minister V.D. Satheesan said on Wednesday.The government had sanctioned ₹2,029.15 crore to local bodies as the first instalment for projects for the 2026-27 fiscal, Mr. Satheesan said at a post-Cabinet press briefing.Stating that the previous LDF government had not sanctioned the third instalment of the fund, he said the government had decided to release ₹136 crore to municipalities and ₹188 crore to corporations for spill-over projects and schemes.In June, the 7th State Finance Commission (SFC) had flagged a mismatch between the 16th UFC allocations for Kerala’s urban population and the actual s