To enhance rural local governance in five states — Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra — the federal government disbursed approximately ₹1,789 crore on Tuesday as part of the 15th Finance Commission Grants.
In order to bolster grassroots governance and address location-specific development requirements, the funds will be released during FY 2025-26. This includes Untied Grants for Panchayati Raj Institutions (PRIs) and Rural Local Bodies.
The second installment for 33 District Panchayats, 146 Block Panchayats, and 11,693 Gram Panchayats was ₹232.60 crore, and Chhattisgarh received ₹8.02 crore from the first installment’s withheld cash, according to the Ministry of Panchayati Raj.
Along with the second installment of ₹509.21 crore for 33 District Panchayats, 247 Block Panchayats, and 14,563 Gram Panchayats in Gujarat, an additional ₹14.64 lakh was issued to additional Gram Panchayats from withheld funds.
Along with ₹104.65 crore of monies that were earlier withheld, Madhya Pradesh received ₹630.64 crore as the initial installment, which covered 51 District Panchayats, 296 Block Panchayats, and 22,914 Gram Panchayats. The second installment for FY 2024-25, which covered 12,702 Gram Panchayats, was given to Telangana in the amount of ₹256.21 crore. On the other hand, Maharashtra received ₹151.18 crore, which was taken from withheld sections of earlier installments and benefited various district, block, and gram panchayats.
Rural local bodies are eligible to use untied grants for site-specific development projects, excluding wages and administrative expenses. Essential services like as sanitation, waste management, water supply, rainfall harvesting, water recycling, and maintaining an open defecation-free status are designated with tied funds.
