Marking a pivotal step in strengthening rural governance, the Union Government has released the Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25. Allocated to Rural Local Bodies (RLBs), these funds are designed to tackle region-specific development priorities and enhance the foundation of grassroots democratic structures across the nation.

Major Allocations to Uttar Pradesh and Andhra Pradesh

Uttar Pradesh has received a substantial ₹1598.80 crores as the second instalment of Untied Grants for its RLBs. The funds will benefit 75 District Panchayats, 826 Block Panchayats, and 57,691 Gram Panchayats across the state. These resources are aimed at supporting decentralised governance and facilitating local development initiatives in line with the Eleventh Schedule of the Constitution.

Similarly, Andhra Pradesh has been allocated ₹446.49 crores, comprising ₹420.99 crores as the second instalment of Untied Grants and ₹25.49 crores from the withheld amount of the first instalment The funds will benefit 13 District Panchayats, 650 Block Panchayats, and 13,097 Gram Panchayats, all of which have been duly elected and are now poised to drive meaningful change in their regions.

Purpose and Utilization of Grants

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) have recommended these grants, released by the Ministry of Finance in two instalments annually. These grants are classified into Untied Grants and Tied Grants, each with a specific focus area:

• United Grants: These funds empower RLBs to address location-specific priorities under the 29 subjects outlined in the Eleventh Schedule, excluding expenses such as salaries and administrative costs. This flexibility enables Panchayati Raj Institutions (PRIs) to tackle local challenges effectively and innovatively.
• Tied Grants: Allocated for essential services, these funds are intended to improve sanitation, maintain Open Defecation Free (ODF) status, manage household waste, and ensure fecal sludge treatment. Additionally, they support water-related initiatives, including the supply of safe drinking water, rainwater harvesting, and water recycling.

Transformative Impact on Grassroots Governance

This landmark initiative by the Government of India underscores its commitment to strengthening grassroots democracy and fostering inclusive growth. By directly channelling funds to PRIs and RLBs, the government is promoting self-reliance, accountability, and transparency in rural administration. This approach aligns with the Hon’ble Prime Minister’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ and the broader goal of creating a Viksit Bharat (Developed India).

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Empowered local bodies emerge as agents of change, taking charge of their destinies and contributing to national progress. These financial allocations are transforming rural India by addressing critical needs, enhancing living standards, and ensuring that development reaches every corner of the country.

The disbursement of XV Finance Commission grants marks a pivotal moment in India’s journey towards decentralized governance and sustainable development. By empowering RLBs in Uttar Pradesh, Andhra Pradesh, and beyond, the government is fostering a robust framework for grassroots participation, ensuring that every village plays a vital role in shaping the nation’s future.

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