The Haryana cabinet has extended a 7% state tax devolution to rural and urban local bodies while widening eligibility under the Deen Dayal Lado Lakshmi Yojana and easing recruitment requirements for former Agniveers. The decisions were approved at a meeting chaired by Chief Minister Nayab Singh Saini on Saturday and will take effect from November 1, 2026, where specified.
Under the extended funding arrangement, local bodies will receive 7% of the state’s own tax revenue, calculated on an actual basis. The arrangement follows the recommendations of the Sixth State Finance Commission and will remain in force from 2026-27 until the Seventh State Finance Commission submits its report.
The distribution of funds will be based primarily on population, which will carry an 80% weightage, while geographical area will account for the remaining 20%. Among rural local bodies, the inter-se distribution will remain at 75% for gram panchayats, 15% for panchayat samitis and 10% for zila parishads. Local bodies may use up to 30% of the devolved funds for street paving.
The decision also sets a revenue-performance condition for urban local bodies. They will need to achieve actual revenue of at least 85% of their budgeted revenue, as recorded in the previous year’s audited accounts. The cabinet’s decision links the flow of devolved funds to both the state’s tax collections and the revenue performance of municipal institutions.
The cabinet separately raised the annual family-income eligibility ceiling for the Deen Dayal Lado Lakshmi Yojana from Rs 1 lakh to Rs 1.80 lakh. More than 10 lakh women currently benefit from the scheme. The cabinet removed a provision that allowed beneficiaries to opt for a lower monthly assistance amount, ensuring that eligible beneficiaries receive the prescribed Rs 2,100 per month.
For new beneficiaries, the first instalment will be credited in full to their savings bank accounts. From the second month, Rs 1,100 will be transferred to savings accounts and Rs 1,000 will be deposited into a government-operated recurring or fixed deposit account. Beneficiaries will also need to complete face authentication through the Lado Lakshmi app once every quarter instead of every month.
The cabinet approved amendments to Haryana’s ex-Agniveer policy, exempting eligible applicants from all prescribed examinations for direct recruitment to covered Group-C posts. Appointments will remain subject to applicable reservation and other recruitment provisions. Former Agniveers applying for wildlife guard, Indian Reserve Battalion constable, State Disaster Response Force constable and fire operator-cum-driver posts will also be exempted from physical screening and physical measurement tests wherever applicable.
In a related decision, the cabinet approved in principle the upgrading of mining guard posts in the mines and geology department from Group-D to Group-C. The posts will be brought under the relevant Group-C service rules, with the stated objective of facilitating reservation and other benefits available to former Agniveers.
The cabinet also granted independent departmental status to the Citizen Resource Information Department and delegated powers to deputy commissioners to approve leases for Har-Hith stores on small plots of panchayat land. The maximum financial assistance available to eligible media personnel was doubled from Rs 2.5 lakh to Rs 5 lakh.
