Daijiworld Media Network - Panaji

Panaji, May 18: The department of urban development in Goa has launched a new financial assistance scheme aimed at supporting Class C municipalities by providing annual grants of up to Rs 70 lac to cover operational and administrative expenses, including employee salaries and pension payments.

Under the scheme, municipalities will receive grants based on their actual expenditure on staff salaries and pensions. However, the assistance will be capped at Rs 50 lac annually for salaries and Rs 25 lakh for pension liabilities.

Officials from the department said that smaller municipal councils often struggle financially due to limited revenue-generating sources and heavy dependence on government support for day-to-day functioning. These financial limitations frequently result in delays in salary payments and pension disbursement, creating uncertainty among employees and retired staff.

Despite handling responsibilities similar to larger municipal bodies, Class C councils lack the same level of financial strength and stability, officials noted.

The newly introduced scheme is intended to ease the financial burden on weaker municipalities and ensure that employees receive salaries and pension benefits on time. Authorities believe the initiative will improve administrative efficiency and provide greater financial security to civic bodies.

The scheme will remain in effect for five years, although the government has stated that revisions may be made periodically depending on the state’s financial condition and future requirements.