Team Goemkarponn
PANAJI: In a significant support measure for financially struggling civic bodies, the Directorate of Urban Development has introduced a new scheme to provide salary and pension assistance to employees and retired staff of Goa’s C-class municipal councils.
The scheme, titled “Grant of Financial Assistance to Economically Weaker ‘C’ Class Municipal Councils for Strengthening the Administration Scheme, 2026”, has been implemented with immediate effect and will remain operational for the next five years.
The initiative covers the State’s three C-class municipalities — Valpoi, Sanguem and Pernem — which have been facing persistent financial constraints.
Under the scheme, the State government will provide annual grants of up to Rs 50 lakh to help municipal councils pay employee salaries. An additional grant of up to Rs 25 lakh per year will be provided towards pension payments for retired staff members.
Officials said the move is intended to reduce the disparity between employees working in smaller municipalities and those employed in financially stronger A and B-class councils.
The government has also kept provisions for additional financial assistance in exceptional situations. Such support may be extended after examining the financial condition of the councils, especially when they are unable to manage administrative expenses because of insufficient funds.
According to the notification, the scheme was framed after considering the poor financial health of smaller municipal councils, many of which depend heavily on government support due to limited revenue generation and smaller population bases.
Authorities noted that several C-class municipalities often struggle to release salaries on time and face difficulties in providing retirement benefits. In certain cases, employees were reportedly receiving only Dearness Allowance (DA) because of the councils’ weak financial position.
The notification stated that staff members in smaller civic bodies perform responsibilities similar to employees in larger municipalities and therefore deserve equal financial security and post-retirement support.
The government believes the scheme will improve administrative stability, boost employee morale, strengthen staff retention and provide better social security for retired municipal workers.
Funds under the scheme will be released in two phases. The second installment will be sanctioned only after the councils submit utilisation certificates for the first installment. Any unused amount will be adjusted in future releases.
The notification further clarified that all grants must be utilised within the same financial year, though the Director of Urban Development may permit extensions in deserving cases.
