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"I Will Release Only When States Ask": FM Sitharaman On Kerala Not Drawing ₹311 Crore Funds

"I Will Release Only When States Ask": FM Sitharaman On Kerala Not Drawing ₹311 Crore Funds

Business Today
Business Today
  • New Delhi,
  • Mar 23, 2026,
  • Updated Mar 23, 2026, 4:53 PM IST

Finance Minister Nirmala Sitharaman, speaking in the Lok Sabha, addressed concerns over fund allocation and release to states like Kerala and Tamil Nadu. She clarified that approvals do not automatically translate into disbursements, as states must first draw the initial tranche, utilise it, and submit utilisation certificates before further funds are released. Citing Kerala as an example, she noted that ₹311.95 crore approved under disaster mitigation schemes remains undrawn. The remarks come amid opposition concerns over declining central transfers and delays, with the government maintaining that procedural compliance by states is key to fund release.

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