Guwahati: The central government has released Rs 436 crore as the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Tripura and Karnataka for the financial year 2024–25.
In Tripura, the government has allocated Rs 31.1259 crore in Untied Grants (2nd installment), benefiting 589 eligible gram panchayats, along with all block panchayats, district panchayats, and traditional local bodies.
“While for Karnataka, Rs 404.9678 crore in Untied Grants (2nd installment) has been released for 5,375 eligible gram panchayats, supporting rural local bodies across the state,” the Ministry of Panchayati Raj said on Thursday.
These grants empower panchayati raj institutions, enabling them to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution.
These funds are utilised for development initiatives, excluding salaries and establishment costs. The grants are divided into two categories: untied and tied grants.
Untied Grants can be used for diverse community-specific needs and are aimed at enhancing local infrastructure and development projects.
Tied Grants are specifically allocated for the critical areas of sanitation (including the maintenance of Open Defecation Free status, waste management, and fecal sludge management) and drinking water (including rainwater harvesting and water recycling).
The release of these funds is a significant move toward decentralizing resources and empowering local governments.
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Managed by the Ministry of Panchayati Raj and Ministry of Jal Shakti, the 15th Finance Commission Grants aim to empower rural communities by fostering grassroots development, strengthening local governance, and funding initiatives that address their specific needs.
