In a major boost to rural governance, the Central Government on Friday announced the release of over ₹1,133 crore to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana. This funding, drawn from the 15th Finance Commission’s grants for FY 2025-26, aims to empower local bodies across these states.
The Ministry of Panchayati Raj detailed that Madhya Pradesh receives the lion’s share with ₹652.55 crore as the second instalment of untied grants for FY 2024-25. This allocation will benefit all 52 eligible district panchayats, 312 block panchayats, and 23,001 gram panchayats in the state. Additionally, ₹77 lakh in previously withheld funds from the first instalment has been disbursed to three extra block panchayats and six gram panchayats.
Punjab has been allocated ₹222 crore as the first instalment of untied grants for FY 2025-26. These funds will support 13,262 gram panchayats, 150 block panchayats, and 22 district panchayats statewide, enabling better service delivery at the grassroots level.
Telangana gets ₹256.03 crore as the first instalment for FY 2024-25, directly aiding 12,702 gram panchayats. Moreover, ₹2.33 crore in withheld funds from the second instalment of FY 2023-24 has been released to 11 additional gram panchayats and 40 block panchayats.
Untied grants offer flexibility for area-specific needs, excluding salary and establishment costs. Tied grants focus on core services like sanitation, maintaining Open Defecation Free (ODF) status, waste management, drinking water supply, rainwater harvesting, and water recycling. This strategic infusion underscores the government’s commitment to decentralized development and sustainable rural infrastructure.