The Union Government has disbursed funds under the Fifteenth Finance Commission (XV FC) Grants for the financial year 2024–25 to support rural local bodies in Rajasthan and Odisha.
For Rajasthan, a total of ₹614.04 crore has been released, comprising ₹560.63 crore as the second installment of untied grants and ₹53.41 crore as the withheld amount from the first installment. These funds will benefit 10,105 Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats across the state.
Similarly, Odisha has received a total of ₹455.16 crore, including ₹370.20 crore as the second installment and ₹84.51 crore as the withheld portion of the first installment. These grants will be distributed among 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats in the state.
The untied grants are designated for location-specific developmental needs identified by Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs). These funds, however, cannot be used for salaries or establishment expenses. The tied grants are earmarked for essential services, such as sanitation, waste management, and the maintenance of Open Defecation Free (ODF) status, as well as for ensuring access to clean drinking water, rainwater harvesting, and water recycling.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of these grants to the states, while the Ministry of Finance facilitates the disbursement in two installments each financial year.
The XV FC grants are instrumental in bolstering grassroots democracy, enhancing local governance, and fostering self-reliance in rural communities. These financial allocations play a vital role in empowering local bodies to address the developmental needs of their regions effectively.