Rural local governance in Rajasthan and Jharkhand is set to receive a significant financial uplift with the release of over ₹723 crore in grants from the Union government. This initiative, part of the 15th Finance Commission’s recommendations, aims to strengthen the foundation of rural development. Rajasthan’s rural bodies are to benefit from ₹303.04 crore in untied grants for the upcoming fiscal year 2025-26. This allocation will reach 3,857 gram panchayats, 339 block panchayats, and 24 district panchayats. Additionally, Rajasthan will receive ₹145.24 crore from previously withheld grants for FY 2024-25, enhancing available resources.
Jharkhand’s rural local bodies have been allocated ₹275.13 crore as the initial release of untied grants for FY 2024-25. This funding is earmarked for distribution among 4,342 gram panchayats, 253 block panchayats, and all 24 district panchayats. The Ministry of Panchayati Raj, in collaboration with other ministries, facilitates the release of these grants, which are crucial for grassroots development. These funds are typically disbursed in two installments per financial year. Untied grants provide autonomy for local bodies to invest in diverse development needs, while tied grants ensure focused spending on critical areas like sanitation, water conservation, and waste management.