The Union Government has allocated a total of ₹2045.29 crores under the Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25. Uttar Pradesh has received ₹1598.80 crores as the second installment of untied grants, benefitting all eligible 75 District Panchayats, 826 Block Panchayats, and 57,691 Gram Panchayats across the state.
Similarly, Andhra Pradesh has been granted ₹446.49 crores, which includes ₹420.9989 crores as the second installment and ₹25.4898 crores as the withheld amount from the first installment. The funds will benefit 13 District Panchayats, 650 Block Panchayats, and 13,097 Gram Panchayats in the state.
The untied grants empower Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) to address location-specific needs across 29 subjects listed in the Eleventh Schedule of the Constitution. These funds cannot be used for salaries or other establishment costs, ensuring that the money is directed solely toward developmental projects. On the other hand, tied grants are intended for essential services, such as maintaining open defecation-free (ODF) status through effective waste and fecal sludge management, as well as improving water supply, rainwater harvesting, and water recycling initiatives.
These grants, released by the Ministry of Finance based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti, reflect the government’s commitment to strengthening grassroots democracy. By channeling funds directly to PRIs and RLBs, the initiative fosters self-reliance, accountability, and inclusive growth, aligning with the Prime Minister’s vision of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas.
