Archive · 10 Oct 2026
Haryana Extends Sixth Finance Commission Recommendations, Raises Scheme Income Limit
Haryana’s Cabinet decided that local councils will keep receiving money under the current funding rules for now.
The rules will stay in place until the next Finance Commission’s recommendations are ready.
The next commission has not yet sent its report to the government.
The state will give local councils 7% of its actual tax revenue.
How the money is divided depends on population and area, among other rules.
Councils can spend no more than 30% of this money paving streets.
The Cabinet also changed a support scheme for women.
More families can now qualify because the income limit was raised from Rs 1 lakh to Rs 1.80 lakh a year.
The Haryana Cabinet approved continuing the Sixth State Finance Commission’s recommendations from 2026-27 until the next commission’s recommendations take effect.
The Seventh Finance Commission has not yet submitted its report to the government.
Under the framework, 7% of the state’s actual Own Tax Revenue will be devolved to local bodies, with allocations based partly on population and area.
Local bodies may use no more than 30% of devolved funds for street paving; urban bodies below a revenue target may face a 20% grant-share reduction.
The Cabinet raised the annual family-income limit for the Deen Dayal Lado Lakshmi Yojana from Rs 1 lakh to Rs 1.80 lakh.
- Who
- The Haryana Cabinet, presided over by Chief Minister Nayab Singh Saini.
- What
- It continued the Sixth State Finance Commission’s funding recommendations and amended the Deen Dayal Lado Lakshmi Yojana’s income eligibility limit.
- When
- The Cabinet decision was announced on Saturday; the finance recommendations will continue from 2026-27 until the next commission’s recommendations take effect.
- Where
- Haryana; the Cabinet meeting was held in Chandigarh.
- Why
- The Seventh Finance Commission has not yet submitted its report, and the scheme amendments are intended to extend benefits to more eligible women and simplify implementation.
- Local-body funding
- 7% of Haryana’s actual Own Tax Revenue will be devolved to local bodies.
- Population and area weighting
- Gram Panchayat and Urban Local Body allocations use 80% population and 20% area weightings.
- Rural local-body distribution
- The inter-se distribution among Gram Panchayats, Panchayat Samitis and Zila Parishads is 75:15:10.
- Street paving limit
- Local bodies may use no more than 30% of devolved funds for pavement of streets.
- Urban-body revenue requirement
- Actual revenue must be at least 85% of budgeted revenue, based on the previous year’s audited accounts.
- Non-compliance reduction
- An Urban Local Body that fails the revenue requirement faces a 20% reduction in its recommended current-year state Finance Commission grant share.
- Scheme income limit
- The annual family-income eligibility limit for the Deen Dayal Lado Lakshmi Yojana increased from Rs 1 lakh to Rs 1.80 lakh.
- Current beneficiaries
- More than 10 lakh women currently benefit from the scheme.