New Delhi: In a significant step towards empowering rural governance, the Union Government has released the first installment of the Fifteenth Finance Commission (XV FC) Untied Grants for the financial year 2025–26. These grants are aimed at strengthening Rural Local Bodies (RLBs) and Panchayati Raj Institutions (PRIs) across three states—Mizoram, Odisha, and Tripura.
State-Wise Allocation of Grants
Mizoram: Rs. 14.2761 crores have been allocated for 827 eligible Village Councils as part of the 2023–24 grants.
Odisha: Rs. 240.8149 crores have been allotted for 6,085 Gram Panchayats and 63 Block Panchayats.
Tripura: Rs. 29.75 crores have been provided for 606 Gram Panchayats, 35 Block Panchayats, 8 Zilla Parishads, along with all 587 Village Committees and 40 Block Advisory Committees.
The total release across these states amounts to over Rs. 284 crores.
Purpose and Utilization of the Grants
The Ministry of Panchayati Raj, in collaboration with the Ministry of Jal Shakti, facilitates the release of these grants. The funds are disbursed in two installments per financial year and are designed to address the location-specific needs of rural local bodies.
Untied Grants: These funds can be used by Rural Local Bodies and Panchayati Raj Institutions for a wide range of activities under the 29 subjects listed in the Eleventh Schedule of the Indian Constitution. However, these grants cannot be used for salaries or establishment costs.
Tied Grants: Allocated for specific basic services such as:
Sanitation and maintaining Open Defecation Free (ODF) status, including management and treatment of household waste, human excreta, and fecal sludge.
Supply of drinking water, rainwater harvesting, and water recycling.
Government’s Commitment to Strengthening Rural Governance
The release of these grants underscores the Government of India’s ongoing commitment to empower local self-governments and enhance rural infrastructure and services. By entrusting funds directly to Panchayati Raj Institutions, the government aims to promote decentralized decision-making and ensure better delivery of essential services at the grassroots level.
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