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 split-up of population between urban and rural local governments. UFC grants allocated to municipalities and corporations were disproportionately high, while the grants to rural governments had fallen sharply, the SFC had said.Other decisionsRetired judge C.N. Ramachandran Nair has been appointed Chairperson of the Police Complaints Authority.The government will release financial assistance from the Chief Minister’s Distress Relief Fund to 248 beneficiaries in Thrissur district who had lost their houses in the rain havoc in 2024. Published - August 05, 2026 08:53 pm IST