Center Releases Finance Commission Grants for Rural Local Bodies in Rajasthan and Odisha

New Delhi: The Union Government has disbursed the Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies in Rajasthan and Odisha for the financial year 2024–25. This financial assistance aims to strengthen grassroots governance and bolster development in rural areas.

Rajasthan has been allocated a total of Rs. 614.04 crore, comprising:

• Rs. 560.63 crore as the second installment of Untied Grants for FY 2024–25.
• Rs. 53.41 crore, representing the previously withheld amount from the first installment of Untied Grants for the same fiscal year.

These funds are designated for 10,105 eligible Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats across the state.

Odisha Allocated Rs. 454.71 Crore

Odisha has received a total of Rs. 454.71 crore, including:

• Rs. 370.20 crore as the second installment of Untied Grants for FY 2024–25.
• Rs. 84.51 crore from the withheld portion of the first installment for the fiscal year.

The grants will support 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats within Odisha.

The Untied Grants are allocated for location-specific needs, excluding salaries and other establishment costs. Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) can utilize these funds under the 29 Subjects outlined in the Eleventh Schedule of the Constitution. Meanwhile, Tied Grants focus on critical services, such as:

• Sanitation: Ensuring maintenance of Open Defecation Free (ODF) status, waste management, and fecal sludge treatment.
• Water Supply: Enhancing access to drinking water, rainwater harvesting, and water recycling.

The grants are facilitated by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), with recommendations from the Fifteenth Finance Commission. These allocations are released in two installments annually by the Ministry of Finance.

The Fifteenth Finance Commission Grants play a pivotal role in empowering rural local bodies, fostering self-reliance, and enhancing accountability in village governance. By providing essential financial support, these grants contribute to the improvement of rural infrastructure, service delivery, and local governance, ensuring sustainable development across the nation’s rural landscape.