Fifteenth Finance Commission Grants for Rural Local Bodies

November 6, 2024

The Union Government has released the Fifteenth Finance Commission (XV FC) Grants for the financial year 2024–25. This funding targets Rural Local Bodies (RLBs) in Haryana, Tripura, and Mizoram. The grants aim to strengthen local governance and enhance rural development.

Grants for Haryana

Haryana’s Panchayati Raj Institutions (PRIs) received Untied grants worth Rs.194.867 crores. This is the first installment for the year. The funds are allocated to 18 District Panchayats, 139 Block Panchayats, and 5,911 Gram Panchayats. These bodies met the necessary conditions for the grants.

Grants for Tripura

Tripura’s RLBs received two types of grants:

The first installment of Untied grants is Rs.31.40 crores.
The first installment of Tied grants is Rs.47.10 crores.

These grants cover all 1,260 RLBs, including traditional bodies like the Tripura Tribal Areas Autonomous District Council (TTAADC) and various village committees.

Grants for Mizoram

Mizoram received the second installment of grants from the XV FC. This includes: – Rs.14.20 crores in Untied grants for the financial year 2022–23. – Rs.21.30 crores in Tied grants for the same period. These funds support all 834 village councils, including those in Autonomous District Council areas.

About Tied and Untied Grants

Grants are classified into two categories:

Untied Grants: These can be used for specific local needs across 29 subjects outlined in the Eleventh Schedule of the Constitution. Notably, they cannot be used for salaries or establishment costs.

Tied Grants: These are earmarked for specific services, including:

Sanitation and maintaining Open Defecation Free (ODF) status.
Management of household waste and fecal sludge.
Supply of drinking water and initiatives for rainwater harvesting and water recycling.

Objective of the XV FC Grants

The XV FC Grants aim to empower PRIs and RLBs. They promote self-governance and accountability in rural areas. The funds enhance the capacity of local bodies, enabling them to drive sustainable development.

Alignment with National Vision

This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’. It supports inclusive growth and participatory democracy, which are essential for national development.

The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti, recommends the release of XV FC grants to states. The Ministry of Finance then disburses these funds. Grants are typically released in two installments within a financial year.

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