The Union government has disbursed over ₹723 crore to empower rural local bodies in Rajasthan and Jharkhand, as per the guidelines of the 15th Finance Commission. This financial aid is crucial for strengthening the decentralized governance framework at the village and block levels.
For Rajasthan, the first installment of untied grants for FY 2025-26 amounts to ₹303.04 crore. This funding will benefit 24 district panchayats, 339 block panchayats, and 3,857 gram panchayats. Additionally, ₹145.24 crore from withheld grants of the previous fiscal year (2024-25) has also been released to eligible local bodies.
Jharkhand will receive ₹275.13 crore as the first installment of untied grants for FY 2024-25. This significant amount will be distributed across the state’s 24 district panchayats, 253 block panchayats, and 4,342 gram panchayats, promoting comprehensive rural development.
The Ministry of Panchayati Raj, in collaboration with the Ministry of Jal Shakti, formulates recommendations for these grants, which are then disbursed by the Ministry of Finance. These grants are typically divided into two annual payments. The flexibility of “untied” grants allows rural bodies to self-determine priorities for development projects related to the 29 subjects in the Eleventh Schedule, excluding operational expenditures. In contrast, “tied” grants are specifically allocated for enhancing sanitation infrastructure, waste management, and water security initiatives.