The Union Government has released the Fifteenth Finance Commission grants of over 562 crore rupees for rural local bodies in Punjab, Uttarakhand, and Chhattisgarh. The Union Panchayati Raj Ministry said these grants, provided to the Panchayati Raj Institutions and rural local bodies, play a crucial role in strengthening grassroots democracy. The Ministry said Punjab got over 225 crore rupees, Chhattisgarh over 244 crore, and Uttarakhand received more than 93 crore rupees during 2024-25 for strengthening rural governance.
The grants released for rural local bodies in Chhattisgarh are the second installment of Untied Grants of the Financial Year 2024–25, amounting to Rs 237.1393 crore along with the withheld amount of the first installment of Untied Grants amounting to Rs 6.9714 crore.
These funds are for 11,548 eligible Gram Panchayats, all eligible 146 Block Panchayats and all eligible 27 Zila Panchayats of the state.
“For Uttarakhand, the first installment of Untied Grants amounting to Rs 93.9643 crore have been released. These funds are for eligible 7,769 Gram Panchayats, all eligible 995 Block Panchayats and all eligible 13 Zila Panchayats of the state,” said the ministry.
The Untied Grants will be utilised by Panchayati Raj Institutions/ Rural Local Bodies for location-specific felt needs, under the 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 sanitation and maintenance of Open Defecation Free (ODF) status, and this should include management and treatment of household waste, and human excreta and faecal sludge management in particular and supply of drinking water, rainwater harvesting and water recycling.
The 16th Finance Commission was constituted on December 31, 2023, with Arvind Panagariya, former NITI Aayog Vice-Chairman, as its Chairman. According to officials, the 16th Finance Commission’s recommendations would be available by October 31, 2025, covering an award period of five years starting from April 1, 2026.
