New Delhi: In a significant boost to rural governance, the Union Government has disbursed Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25 to rural local bodies in Rajasthan and Odisha. This move aims to empower Panchayati Raj Institutions (PRIs) and enhance grassroots governance in both states.
For Rajasthan, the Government released the second installment of untied grants amounting to Rs 560.63 crore. The withheld amount of the first installment, totalling Rs 53.41 crore, has been disbursed. These funds are allocated to 10,105 eligible Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats in the state.
Odisha has received a second installment of untied grants amounting to Rs 370.20 crore. Alongside, the withheld amount of the first installment, totaling Rs 84.51 crore, has been released. This funding is designated for 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats.
The untied grants empower Rural Local Bodies (RLBs) to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. The tied grants, on the other hand, are earmarked for:
Sanitation and Maintenance of ODF (Open Defecation Free) Status: Including management and treatment of household waste, human excreta, and fecal sludge.
Water Supply Initiatives: Such as drinking water supply, rainwater harvesting, and water recycling projects.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) collaborate to recommend the release of these grants to states. The Ministry of Finance subsequently disburses the funds in two installments per financial year.
The XV FC grants are pivotal in strengthening grassroots democracy. By enhancing financial autonomy, these grants improve rural governance, accountability, and self-reliance in villages. They also empower PRIs to address critical issues and foster sustainable rural development.
This financial assistance underscores the Union Government’s commitment to promoting inclusive growth and strengthening rural infrastructure, thereby ensuring that development reaches the last mile.
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