New Delhi: The Union government has released more than Rs 723 crore as grants to support and strengthen rural local bodies in Rajasthan and Jharkhand under the 15th Finance Commission, the Ministry of Panchayati Raj said on Friday.
According to the ministry, the funds have been released as part of the first instalment of untied grants for the financial year 2025–26. Rajasthan received Rs 303.04 crore as the first instalment for FY 2025–26, benefiting 24 district panchayats, 339 block panchayats and 3,857 gram panchayats across the state. In addition, Rs 145.24 crore from the withheld portion of the first and second instalments of untied grants for FY 2024–25 has also been released to eligible rural local bodies in the state.
For Jharkhand, the Centre released Rs 275.13 crore as the first instalment of untied grants for FY 2024–25. The funds will be distributed among all 24 eligible district panchayats, 253 block panchayats and 4,342 gram panchayats across the state.
The Ministry of Panchayati Raj, along with the Ministry of Jal Shakti, recommends the release of 15th Finance Commission grants for Panchayati Raj institutions, which are subsequently disbursed by the Ministry of Finance. These grants are released in two instalments each financial year.
Untied grants can be used by rural local bodies for location-specific development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment expenses. Tied grants are earmarked for sanitation, maintenance of open defecation-free status, waste management, drinking water supply, rainwater harvesting and water recycling.
Earlier in November, the Centre had released over Rs 223 crore for rural local bodies in Assam and Rs 444.38 crore for panchayats in Odisha under the same Finance Commission framework.
With inputs from IANS