Union Government Releases XV Finance Commission Grants for Rural Local Bodies in Andhra Pradesh and Rajasthan
Union Government Releases XV Finance Commission Grants for Rural Local Bodies in Andhra Pradesh and Rajasthan
Major Boost for Rural Development: Over ₹1,267 crores for Rajasthan and over ₹988 crores for Andhra Pradesh released as the first installment.
The Union Government has announced the release of the first installment of the Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25 to Rural Local Bodies (RLBs) in Andhra Pradesh and Rajasthan.
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- Andhra Pradesh has received a total of ₹988.773 crores, which includes:
- Untied Grants: ₹395.5091 crores
- Tied Grants: ₹593.2639 crores
These funds will benefit 9 eligible District Panchayats, 615 eligible Block Panchayats, and 12,853 eligible Gram Panchayats. - Rajasthan has received a total of ₹1,267.793 crores, which includes:
- Untied Grants: ₹507.1177 crores
- Tied Grants: ₹760.6769 crores
These grants will support 22 eligible District Panchayats, 287 eligible Block Panchayats, and 9,068 eligible Gram Panchayats.
Utilizing Untied and Tied Grants for Empowering Local Governance
The untied grants will allow Panchayats to address specific local needs across 29 subjects under the Eleventh Schedule of the Constitution of India, which includes areas such as agriculture, rural housing, education, and sanitation. However, these funds cannot be utilized for salaries or establishment costs.
The tied grants will focus on essential services, particularly:
- Sanitation
- Maintenance of Open-Defecation Free (ODF) status
- Water management, including rainwater harvesting, water recycling, and treatment of household waste.
Strengthening Grassroots Democracy for Inclusive Growth
In line with Article 243G of the Indian Constitution, these funds empower Panchayats to manage essential services and infrastructure. The tied grants present a significant opportunity for Gram Panchayats to redefine local self-governance in alignment with Mahatma Gandhi’s vision of ‘Gram Swaraj’. This initiative aims to foster responsible and responsive leadership at the grassroots level.
This empowerment process resonates with the Government’s guiding principle of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’, as articulated by Prime Minister Narendra Modi. It underscores a commitment to achieving the goal of “Viksit Bharat” (Developed India). By enhancing local governance, these funds contribute to inclusive growth and sustainable rural development, reinforcing India’s commitment to participatory democracy and village-level progress.
The Government of India, through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of XV-FC Grants to states for Rural Local Bodies, which are then disbursed by the Ministry of Finance. The allocated grants are provided in two installments within a financial year.
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