Union government releases Finance Commission Grants to empower panchayats

New Delhi:- Uttar Pradesh & Andhra Pradesh: The Union Government has released the second installment of Fifteenth Finance Commission grants for rural local bodies in Uttar Pradesh and Andhra Pradesh, aimed at strengthening grassroots governance and inclusive development.

Funds released for Uttar Pradesh and Andhra Pradesh

For the financial year 2024–25, the Union Government has disbursed significant grants to rural local bodies (RLBs) in Uttar Pradesh and Andhra Pradesh:

Uttar Pradesh: Rs. 1598.80 crores as the second installment of untied grants, covering all 75 eligible District Panchayats, 826 Block Panchayats, and 57,691 Gram Panchayats.

Andhra Pradesh: Rs. 420.9989 crore as the second installment of untied grants and an additional Rs. 25.4898 crore from the withheld amount of the first installment. These funds are allocated for 13 eligible District Panchayats, 650 Block Panchayats, and 13,097 duly elected Gram Panchayats.

Purpose of the grants

The Fifteenth Finance Commission grants are aimed at addressing location-specific needs, with allocations categorized as:

Untied Grants: To be utilized for local development projects under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied Grants: Specifically designated for:

1. Sanitation, including maintaining ODF status, managing household waste, and fecal sludge management.
2. Drinking water supply, rainwater harvesting, and water recycling.

Channeling funds through strategic ministries

The grants are released based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation). The Ministry of Finance disburses the funds in two installments annually to strengthen Panchayati Raj Institutions (PRIs) and foster rural development.

Empowering grassroots governance

This initiative aligns with the government’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ and is a milestone in empowering Panchayati Raj Institutions. By directly funding PRIs, the government is:

Encouraging local self-reliance and accountability.
Enabling villages to address their unique development needs.
Deepening democratic participation at the grassroots level.

Transforming Rural India

With this financial empowerment, Panchayati Raj Institutions are evolving as engines of change, playing a pivotal role in India’s journey toward becoming Viksit Bharat. These institutions are reshaping rural governance, ensuring that villages not only fulfill their developmental aspirations but also contribute significantly to national prosperity.

This landmark initiative underscores the government’s commitment to fostering inclusive growth and transforming rural governance in India.