Untied Grants Boost Local Governance in Five Indian States
The Union Government has announced the release of Untied Grants from the Fifteenth Finance Commission (XV-FC) for various Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra for the fiscal year 2025–26. This funding initiative aims to enhance rural governance and empower local bodies to address specific community needs effectively.
Chhattisgarh Receives Significant Funding
In Chhattisgarh, a total of ₹232.60 crores has been allocated as the 2nd installment of Untied Grants. This funding will benefit all 33 District Panchayats (DPs), 146 Block Panchayats (BPs), and 11,693 Gram Panchayats (GPs). Moreover, the government has released ₹8.0238 crores from the withheld portion of the 1st installment, which is allocated to 1 DP, 8 BPs, and 350 GPs to bolster their financial capacity.
Gujarat’s Grant Distribution
Gujarat is set to benefit from ₹509.2177 crores as the 2nd installment, covering 33 DPs, 247 BPs, and 14,563 GPs. Additionally, an amount of ₹14.64 lakhs has been freed from the withheld portion, benefiting two more GPs and supporting local development initiatives.
Madhya Pradesh’s Comprehensive Support
For Madhya Pradesh, the government has released ₹630.6454 crores as the first installment of Untied Grants. This allocation will reach 51 DPs, 296 BPs, and 22,914 GPs. The state also received ₹104.6556 crores from withheld portions of the first and second installments for the fiscal year 2023–24, benefiting an additional 21 DPs, 106 BPs, and 834 GPs.
Telangana’s Role in Rural Development
Telangana has been allocated ₹256.2101 crores as the 2nd installment for the fiscal year 2024–25, directly benefiting approximately 12,702 GPs. This funding will empower local bodies to address pressing community needs.
Maharashtra’s Financial Relief
Maharashtra has received ₹151.1856 crores as a release of previously withheld portions from the first and second installments for the fiscal year 2022–23. This financial assistance will support 12 DPs, 125 BPs, and 324 GPs across the state.
The grants are recommended by the Government of India through the Ministry of Panchayati Raj and the Ministry of Jal Shakti. Once approved, the Ministry of Finance releases these funds at two installments each fiscal year. These Untied Grants are designated for local bodies to address specific developmental needs under the Constitution’s Eleventh Schedule, excluding salaries and establishment costs. The associated Tied Grants are earmarked for essential services such as sanitation, drinking water supply, and rainwater harvesting, among others.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
