Chandigarh, November 18, 2025 : In a historic move aimed at giving new direction and momentum to rural development in the state, the Punjab government recently released ₹332 crore. This significant decision reflects the visionary leadership of Chief Minister Bhagwant Mann and his unwavering commitment to the rural population. Finance Minister Harpal Singh Cheema clarified in Chandigarh that these funds have been directly transferred to the accounts of over 13,000 Gram Panchayats, 153 Panchayat Samitis, and 22 Zila Parishads. This step not only exemplifies administrative transparency but also ensures that development work will now be implemented swiftly, producing visible change at the grassroots level.
The fund distribution has been designed in two major parts, keeping local needs and priorities in mind, ensuring no area is left out. Of the total amount, ₹156 crore has been allocated as ‘untied funds’ to Panchayats, giving them full autonomy to choose development projects. Panchayats can now decide whether to prioritize road construction, community buildings, drinking water supply, or electrification in their villages, marking a major step toward empowering local self-governments.
Additionally, ₹176 crore has been reserved as ‘tied funds’ for rural health and sanitation. These funds will be used under strict guidelines for cleanliness, waste management, construction of community toilets, and maintaining villages as Open Defecation Free (ODF). The Punjab government’s vision is clear: development is not just about erecting buildings but creating a clean and healthy environment that directly improves villagers’ quality of life.
With this initiative, Gram Panchayats are now empowered to implement essential infrastructure and overall development projects autonomously. On average, each Panchayat has received ₹1.76 lakh in the first installment. The government also plans to release a second installment of ₹334 crore by the end of the year or January 2026, ensuring a total of ₹3.52 lakh per Panchayat annually, extending progress even to remote areas.
Finance Minister Cheema emphasized that more proactive Panchayats will deliver better basic facilities in line with public aspirations. This initiative is considered a revolutionary step toward ‘Rangin Punjab’ and strong villages. The government has committed to giving equal attention to roads, water, sports, education, health, agriculture, and electricity, including ₹4,150 crore for repairing 19,000 km of roads and ₹1,000 crore for building stadiums, reflecting its broad vision.
Fund allocation across districts has been balanced based on need and population density, with Ludhiana, Hoshiarpur, and Gurdaspur receiving the highest amounts: ₹33.40 crore, ₹28.51 crore, and ₹27.64 crore, respectively. Other districts, including Sangrur, Patiala, Jalandhar, Firozpur, Fazilka, Moga, Shaheed Bhagat Singh Nagar, Sri Muktsar Sahib, and Tarn Taran, have also received adequate funds according to their requirements, ensuring no village or district is left behind in development.
This initiative is a milestone in strengthening the Panchayati Raj system. Funds are distributed at three levels — Gram Panchayat (70%), Panchayat Samiti (20%), and Zila Parishad (10%) — ensuring accountability and speeding up development. The government has also ensured strict monitoring of fund usage to prevent corruption or financial mismanagement, ensuring public money serves public interests.
The entire fund transfer process has been digitized, maintaining complete transparency, allowing Panchayats to receive funds directly without intermediaries. Special provisions for sanitation will ensure Open Defecation Free villages, cleanliness, and environmental protection. Under CM Bhagwant Mann’s leadership, the Punjab government has demonstrated that when governance is transparent and well-intentioned, benefits reach the last person. This focus on transparency and efficiency is expected to take Punjab to new heights in rural development in the coming years.
Summary:
The Punjab Government disbursed the first installment of ₹332 crore to support Panchayat-led development projects, aiming to empower local governance and foster prosperous village communities.