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State Government Takes Historic Decision as Kargil Fund Depletes: All Military Allowances to Be Funded Directly from the State Treasury

Anita Shukla

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Maharashtra to Fund Military Allowances from State Treasury

MUMBAI, JULY 7: The Government of Maharashtra has announced a landmark decision concerning the financial assistance provided to the families of brave soldiers who made the ultimate sacrifice for the nation, as well as decorated gallantry award winners. In a revolutionary move, the state government has decided to provide 100% direct state funding for the lump-sum ex-gratia given to the next of kin of soldiers martyred in various wars, disabled personnel, and families of martyrs from the Border Security Force (BSF) and other paramilitary forces. Additionally, the monthly and lump-sum cash grants awarded under the ‘Maharashtra Gaurav Puraskar’ scheme will now be completely funded by the state government.

Previously, 50% or more of the expenditure for these welfare schemes was covered by the interest earned on fixed deposits of the ‘Chief Minister’s Relief (Kargil) Fund’ invested in nationalized banks. The remaining deficit was managed through the welfare fund of the Department of Sainik Welfare. However, over the past few years, the state government significantly enhanced the financial grants allotted to these soldiers and their families. Conversely, the Kargil Fund had no alternative revenue streams beyond the interest generated from its fixed deposits. Due to the escalating expenses, the interest income fell short, forcing the administration to utilize the principal amount of the fixed deposits upon maturity. Consequently, the accumulated reserves within the ‘Chief Minister’s Relief (Kargil) Fund’ have now been entirely depleted. To prevent any disruption to these welfare schemes and ensure timely assistance to the families of martyrs, the state government has resolved to bear the entire financial liability from its own treasury, a move fully sanctioned by the Finance Department.

Under this historic mandate, the lump-sum cash grants for the next of kin of soldiers from the state martyred during domestic or international operations and skirmishes will now be drawn entirely from government funds. Alongside this, the lump-sum cash awards for serving or retired personnel holding gallantry or service medals, as well as the monthly allowances provided to the widows and dependents of posthumous gallantry awardees under the Maharashtra Gaurav Puraskar scheme, will receive 100% government funding. The administration has secured a dedicated budget head under the social security and welfare domain, ensuring that financial constraints do not hinder the process in the future and enabling dignified, seamless, and immediate assistance to the families of brave soldiers.

Major Relief for Families of Post-Independence Martyrs: 100% Government Funding for Golden Jubilee Scheme

The state government has extended full financial security to the ‘Martyr Dependent Financial Assistance Golden Jubilee Year Scheme,’ which supports the families of soldiers martyred in various wars and military campaigns between August 15, 1947, and April 30, 1995. Under this scheme, families of these veterans receive a monthly financial aid of 3,000 INR. Previously, this expenditure was also reliant on the interest accrued from the ‘Chief Minister’s Relief (Kargil) Fund.’ Following the total depletion of the Kargil Fund, the state government has determined that this monthly assistance of 3,000 INR will now be disbursed entirely through state treasury funds. This crucial intervention ensures ongoing financial stability and vital support for the mothers and wives of veterans from post-independence operations.