Continued Impetus on Empowerment of Rural Local Bodies; Fifteenth Finance Commission Grants now released for Kerala & Meghalaya
Untied Funds Aim at addressing Location Specific Needs
By PIB Delhi
The Union Government has released Fifteenth Finance Commission (XV FC) Grants during Financial Year 2024–25, for Rural Local Bodies in Kerala for the 2nd installment of Untied Grants amounting to Rs.266.80 crores. These funds are for all the eligible 14 District Panchayats, all eligible 152 Block Panchayats and all eligible 941 Gram Panchayats in the state. While for the Rural Local Bodies in Meghalaya, 1st installment of Untied Grants of the Financial Year 2021–22 amounting to Rs.27.00 crore have been released. These funds are for all the 3 eligible Autonomous District Councils (Khasi, Garo, Jaintia) of the state.
The Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV–FC Grants to the States for Rural Local Bodies which are then released by Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year.
The Untied Grants provided to Rural Local Bodies are designated for location-specific needs across the Twenty–Nine (29) Subjects outlined in the Eleventh Schedule of the Constitution, with the exception of expenses related to salaries and other establishment costs. Meanwhile, the Tied Grants are dedicated to supporting essential services, including (a) sanitation efforts and maintenance of Open Defecation-Free (ODF) status, covering household waste management, human waste treatment, and fecal sludge management, and (b) ensuring the supply of drinking water along with rainwater harvesting and water recycling initiatives.
The Government of India is actively strengthening rural local self-governance by empowering Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) through the Fifteenth Finance Commission (XV FC) Grants. These funds are instrumental in making PRIs / RLBs more capable, accountable, and self-reliant, thereby driving sustainable development across rural regions. Aligned with the Hon’ble Prime Minister Narendra Modi’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’, this initiative promotes inclusive growth and participatory democracy. It reinforces PRIs / RLBs as essential pillars within the nation’s development framework, contributing to the vision of Viksit Bharat.