In a major boost for rural development, the government on Saturday said it has released the first instalment of the 15th Finance Commission grants worth more than Rs 2,255 crore for the current fiscal to the rural local bodies in Andhra Pradesh and Rajasthan.
Andhra Pradesh has received untied grants amounting to Rs 395.5091 crore and tied grants totalling Rs 593.2639 crore.
These funds are for nine eligible district panchayats, 615 eligible block panchayats and 12,853 eligible gram panchayats in the state, according to the Ministry of Panchayati Raj.
In Rajasthan, untied grants of Rs 507.1177 crore and tied grants of Rs 760.6769 crore have been released for 22 eligible district panchayats, 287 eligible block panchayats and 9,068 eligible gram panchayats in the state.
The untied grants will enable Panchayats to address specific local needs across 29 subjects under the Eleventh Schedule of the Constitution of India, ranging from agriculture and rural housing to education and sanitation.
According to the ministry, these funds, however, cannot be used for salaries or establishment costs.
The tied grants will focus on core services such as sanitation, maintenance of open-defecation free (ODF) status and water management, including rainwater harvesting, water recycling, and treatment of household waste.
The funds empower Panchayats to manage essential services and infrastructure.
“The provision of tied grants has presented a significant opportunity for Gram Panchayats to redefine local self-governance in alignment with Mahatma Gandhi’s vision of ‘Gram Swaraj’, fostering the development of responsible and responsive leadership at the grassroots level,” said the government.
The allocated grants are recommended and released in two instalments in a financial year.
By enhancing local governance, these funds contribute to the inclusive growth and sustainable rural development, reinforcing India’s commitment to participatory democracy and village-level progress.
The government, through Ministry of Panchayati Raj and Ministry of Jal Shakti, recommends release of grants to states for rural local bodies, which are then released by Ministry of Finance.