Panaji: In an effort to strengthen financially weaker ‘C’ class municipal councils, the state government has introduced a scheme to provide financial assistance towards salaries and pension benefits for municipal employees and retired staff.
Pernem, Valpoi and Sanguem municipalities are categorised under ‘C’ class.
Under the scheme, financial assistance for salaries will be provided up to Rs 50 lakh annually per municipal council, while pension assistance will be capped at Rs 25 lakh annually.
The scheme, titled ‘Grant of Financial Assistance to Economically Weaker ‘C’ Class Municipal Councils for Strengthening the Administration Scheme, 2026’, was notified by the Department of Urban Development and Municipal Administration.
According to the notification, the government observed that while ‘A’ and ‘B’ class municipalities have stronger revenue sources and receive higher grants, smaller ‘C’ class municipal councils function with limited financial capacity because of lower populations and restricted revenue streams. These councils largely depend on government grants to meet operational and administrative expenses.
The notification stated that employees in several smaller municipalities face delays in receiving salaries and pension benefits despite performing duties similar to employees in larger councils.
The government also noted that many councils currently manage to provide only dearness allowance, leading to financial insecurity among staff and retired employees.
To address these concerns, the government decided to provide grants towards salaries and pension payments, which will be released in two instalments.
The scheme also allows the government to sanction additional funds in deserving or contingent situations if a municipal council is unable to meet administrative expenditure because of lack of funds.
The government stated that the initiative aims to ensure timely salaries, provide social security to retired employees, improve staff morale and reduce disparities between different classes of municipalities.
