In a significant move aimed at accelerating rural development, the Gujarat government has released Rs. 741.90 crore to Panchayati Raj institutions as part of the second installment of the 15th Finance Commission. This major allocation is expected to enable more than 45,000 development works across villages, strengthening essential services and improving living standards for rural citizens.
Minister Highlights Strong Commitment to Rural Progress
Panchayat Minister Mr. Rushikesh Patel stated that the funds will empower local governance bodies to undertake critical development activities such as drinking water supply, sanitation systems, and vital infrastructure improvements. He emphasized that the objective is to ensure holistic growth in rural areas while enhancing the efficiency of essential service delivery.
Funds Distributed Across All Three Tiers of Panchayati Raj
The allocation has been distributed according to the prescribed ratio for the three tiers of Panchayati Raj institutions:
• Gram Panchayats: 70% of Rs. 519.33 crore
• Taluka Panchayats: 20% of Rs. 148.38 crore
• District Panchayats: 10% of Rs. 74.19 crore
This distribution ensures that development benefits reach every level of governance, promoting balanced infrastructural growth and strengthening rural administration.
Strong Financial Backing for Rural Empowerment
The Minister noted that the Gujarat government remains committed to improving rural infrastructure and ensuring equitable access to essential amenities. By enabling Panchayats to utilize funds effectively, the state aims to enhance local development mechanisms and widen the reach of welfare initiatives.
A Year of Record Allocations for Rural Development
In the last year alone, Gujarat has allocated a total of Rs. 2,619 crore under the 15th Finance Commission to drive rural transformation. This includes:
• First installment of Tied Grant: Rs. 829.50 crore
• Second installment of Tied Grant: Rs. 741.90 crore
• First installment of Untied Grant: Rs. 553 crore
• Second installment of Untied Grant: Rs. 494.60 crore
Officials stated that this consistent financial support will empower Panchayats and bring renewed momentum to ongoing and upcoming development projects across Gujarat’s villages.
