Punjab Releases First ₹332 Crore Installment to Boost Rural Development Across State

Chandigarh, November 17, 2025 — The Punjab government has released the first installment of ₹332 crore to accelerate rural development under the leadership of Chief Minister Bhagwant Mann. Finance Minister Harpal Singh Cheema announced that the funds have been directly deposited into the accounts of more than 13,000 Gram Panchayats, 153 Panchayat Samitis and 22 Zila Parishads, marking a significant step towards transparent and decentralised governance in the state.

The allocation has been divided into two categories to address local needs more effectively. A sum of ₹156 crore has been provided as an ‘Untied Fund’, giving Panchayats full authority to prioritise essential works. These include road construction, electrification, community centres and improvements in drinking water infrastructure. The remaining ₹176 crore has been designated as a ‘Tied Fund’ to strengthen rural health and sanitation. This amount will support waste management, community toilets, and the maintenance of Open Defecation Free (ODF) status in villages.

Each Gram Panchayat has received an initial ₹1.76 lakh to begin development works, with the government planning to release an additional installment of ₹334 crore by the end of the financial year or January 2026. This will raise the total funding to ₹3.52 lakh per Panchayat for the year, ensuring consistent progress across rural areas.

Cheema said the initiative is part of a broader vision to build a “Vibrant Punjab” with strong and self-sufficient villages. The government is simultaneously focusing on roads, water supply, sports infrastructure, healthcare, education, agriculture and power. As part of this push, ₹4,150 crore has been earmarked for the repair of 19,000 km of rural roads, while ₹1,000 crore has been set aside for constructing sports stadiums to promote athletic activities in villages.

The district-wise distribution follows a balanced model based on population and local requirements. Ludhiana received the highest allocation at ₹33.40 crore, followed by Hoshiarpur at ₹28.51 crore and Gurdaspur at ₹27.64 crore. Districts such as Sangrur, Patiala, Jalandhar, Firozpur, Fazilka, Moga, SBS Nagar, Sri Muktsar Sahib and Tarn Taran have also been allotted funds according to their needs.

The release has been carried out in a 70:20:10 ratio among Gram Panchayats, Panchayat Samitis and Zila Parishads, respectively. The government has emphasised that all fund utilisation will be closely monitored to prevent misuse and ensure that the money is spent solely on public welfare. The fully digitised transfer system has eliminated intermediaries, enabling a transparent and speedy flow of funds directly to Panchayats.

Officials noted that the sanitation-focused provisions will help maintain village cleanliness, strengthen environmental protection and support long-term rural health. The state government says the initiative underlines its commitment to ensuring that governance benefits reach the last person in the line.