In compliance with the Fifteenth Finance Commission’s recommendations, the Central government has disbursed the second tranche of untied grants for rural local governments in Rajasthan and Odisha for 2024–25. In addition to the withheld amount of the first installment of the Untied Grants for the Financial Year 2024-25, which was Rs 53.41 crore for 10,105 eligible Gram Panchayats, 315 block panchayats, and 20 eligible district panchayats in the state, Rs 560.63 crore has been released as the second installment of the Untied Grant for Rajasthan, the official statement said.
Along with the withheld amount of the first installment for the Financial Year 2024–2025, which totaled Rs. 84.5086 crore for 6,794 eligible Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats in the state, Rs. 370.20 crore has also been released as the second installment of the untied grant Odisha. With the exception of salaries and other setup costs, the untied grants shall be used by the Panchayati Raj Institutions for location-specific felt needs under the 29 subjects listed under the Eleventh Schedule of the Constitution. The Tied Grants can be used for basic sanitation services and ODF status maintenance, which should involve managing and treating household waste, including fecal sludge and human excreta.
They can also be used for the supply of drinking water, rainwater harvesting and water recycling. The Central government through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of Fifteenth Finance Commission Grants to States for Rural Local Bodies which are then released by the Ministry of Finance. The allocated Grants are recommended and released in two installments in a Financial Year. The Fifteenth Finance Commission Grants provided to Panchayati Raj Institutions play a crucial role in strengthening grassroots democracy. This financial support is improving rural local governance, enhancing accountability, and promoting self-reliance in villages, the statement added.