This follows the disbursement of December’s allocation to all tiers of government, a source revealed over the weekend.
The move marks a significant step towards implementing the Supreme Court’s July 11 judgment, which granted financial autonomy to local councils.
This decision aims to end the longstanding practice of channeling council allocations through the state/local government joint account, a system often criticized for delays and inefficiencies.
Efforts to enforce the ruling have faced resistance from several state governors, who have expressed displeasure with the Supreme Court’s judgment. However, a member of the Inter-Ministerial Committee tasked with enforcing the decision confirmed that approval has been granted to operationalize the direct allocation system.
While some councils have reportedly started receiving their allocations directly, the process will be fully implemented next month.
The source declined to specify which councils have already transitioned to the direct disbursement system.
