The Union Government has recently released significant grants under the Fifteenth Finance Commission (XV FC) for the Financial Year 2024-25. Rajasthan and Odisha have received substantial funds for their Rural Local Bodies (RLBs), aimed at strengthening grassroots governance and addressing local development needs.
In Rajasthan, the government has released a total of ₹614.04 crore. This includes the second installment of untied grants amounting to ₹560.63 crore, along with the withheld amount of ₹53.41 crore from the first installment. The grants will support 10,105 Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats in the state, enabling them to address local needs in various sectors such as sanitation, water supply, and community development.
Odisha has also received significant financial support, with ₹454.71 crore allocated for its RLBs. This amount includes ₹370.20 crore as the second installment and ₹84.51 crore as the withheld amount from the first installment. The funds will benefit 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats, helping to enhance infrastructure and public services in rural areas.
These grants are part of a broader initiative to improve rural governance through the financial support of Panchayati Raj Institutions (PRIs). The funds can be used for location-specific projects related to sanitation and water supply, contributing to better management of waste, water recycling, and overall rural development. However, the grants cannot be used for salaries or administrative costs.
The XV Finance Commission grants are essential in enhancing local democracy, increasing transparency, and fostering self-reliance in rural India. By empowering Panchayati Raj Institutions, the government is ensuring that the benefits of development reach the grassroots level, making rural communities more resilient and self-sufficient.
