Union Government Allocates Over ₹1,133 Crores for Rural Development
The Union Government of India has allocated a substantial sum of over ₹1,133 crores in grants as part of the Fifteenth Finance Commission (XV FC) to bolster Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana for the financial year 2025-26. This financial backing is crucial for enhancing rural governance and development across these states.
Madhya Pradesh Receives Major Funding
In Madhya Pradesh, the government has released ₹652.55 crores as the second installment of Untied Grants for the financial year 2024-25. This funding will be distributed among all 52 eligible District Panchayats, 312 Block Panchayats, and 23,001 Gram Panchayats statewide. Additionally, ₹77 lakhs, which had been withheld from the first installment, will also be disbursed to three newly eligible Block Panchayats and six Gram Panchayats, ensuring further support for local governance.
Punjab and Telangana Benefit from Untied Grants
Punjab’s allocation under the scheme includes ₹222 crores as the first installment of Untied Grants for the fiscal year 2025-26. This funding will aid all 13,262 eligible Gram Panchayats, 150 Block Panchayats, and 22 District Panchayats, significantly contributing to rural development initiatives in the state.
Meanwhile, in Telangana, an amount of ₹256.03 crores has been released as the first installment of Untied Grants for FY 2024-25, benefitting 12,702 eligible Gram Panchayats. Supplementary funding of ₹2.33 crores from the withheld portion of the previous fiscal year’s second installment will also reach 11 additional Gram Panchayats and 40 Block Panchayats, offering them necessary financial support.
Usage of the Grants
The grants provided by the Union Government are vital for the operational needs of PRIs and RLBs. The Untied Grants can be utilized for various local projects, addressing the specific developmental needs under the 29 subjects listed in the Eleventh Schedule of the Indian Constitution, though they cannot cover salaries or establishment expenses. The Tied Grants can ensure provision for crucial services such as sanitation, maintenance of Open Defecation Free (ODF) status, drinking water supply, rainwater harvesting, and water recycling, along with the management of household waste.
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