Assam Receives ₹256 Crores in XV FC Grants for Local Bodies
The Union Government has announced the release of the second installment of XV Finance Commission (XV FC) grants for the financial year 2025-26, amounting to ₹256.60 crores. This funding will be directed towards strengthening Panchayati Raj Institutions and rural local bodies across Assam, positively impacting local governance and development.
These grants will benefit a total of 27 District Panchayats (DPs), 182 Block Panchayats (BPs), 2,192 Gram Panchayats (GPs), and three Autonomous District Councils (ADCs) in Assam. The eligible councils include the Bodoland Territorial Council (BTC), the Karbi Anglong Autonomous Council (KAAC), and the Dima Hasao Autonomous Council (DHAC). In addition to this allocation, ₹42.70 crores, previously withheld from the first installment of the untied grant for FY 2025-26, has also been released to these three ADCs.
Grants Management and Allocation
The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti, oversees the distribution of these grants. The Ministry of Finance is responsible for the actual release of the funds. Grants are divided into two installments throughout the financial year, ensuring timely support for local institutions.
The untied grants can be utilized as per the specific needs of the local authorities, addressing various development priorities enshrined in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or other routine establishment costs.
Focus on Local Needs and Basic Services
Local bodies are encouraged to use the allocated funds for location-specific projects that cater to their unique challenges and requirements. There are also tied grants specifically set aside for essential services. This includes initiatives focused on sanitation and maintaining Open Defecation Free (ODF) status, alongside waste management initiatives. Additionally, the tied grants will support the supply of drinking water, rainwater harvesting systems, and water recycling efforts.
This strategic financial support aims to empower local governance structures in Assam, enabling them to better serve their communities and enhance the quality of life for all residents.
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