The Union government has released Fifteenth Finance Commission (XV FC) Grants during financial year 2024–25 for rural local bodies in Punjab, Uttarakhand and Chhattisgarh.

These grants provided to the Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) play a crucial role in strengthening grassroot democracy.

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“For the Rural Local Bodies of Punjab, the first installment of Untied Grants amounting to Rs.225.1707 crores have been released. These funds are for eligible 13144 Gram Panchayats, eligible 146 Block Panchayats and all eligible 22 District Panchayats in the state,” the Ministry of Panchayati Raj said on Tuesday

While the Fifteenth Finance Commission (XV FC) Grants released during Financial Year 2024–25, for Rural Local Bodies in Chhattisgarh are, second installment of Untied Grants of the Financial Year 2024–25 amounting to Rs 237.1393 crore along with the withheld amount of first installment of Untied Grants for Financial Year 2024–25 amounting to Rs.6.9714 crore.

These funds are for 11548 eligible Gram Panchayats, all eligible 146 Block Panchayats and all eligible 27 Zila Panchayats of the State. While for Rural Local Bodies in Uttarakhand, the first installment of Untied Grants for the Financial Year 2024–25 amounting to Rs.93.9643 crore have been released.

These funds are for 7769 Gram Panchayats, all eligible 995 Block Panchayats and all eligible 13 Zila Panchayats of the state.

The Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of Fifteenth Finance Commission (XV FC) 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 Untied Grants will be utilized by Panchayati Raj Institutions (PRIs)/ Rural Local Bodies (RLBs) for location-specific felt needs, under the Twenty-Nine (29) Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs.

The Tied Grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.