Centre Allocates Funds to Rajasthan and Odisha for Rural Developmnet

The Union Government has allocated funds for rural local bodies in Rajasthan and Odisha for the financial year 2024–25, which aims to empower local governance and enhance community development.

Financial Breakdown for Rajasthan

Rajasthan has received ₹560.63 crore as the second installment of untied grants. Additionally, ₹53.41 crore from the first installment was released. These funds are distributed among 10,105 Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats.

Financial Breakdown for Odisha

Odisha has been allocated ₹370.20 crore as the second installment of untied grants. Furthermore, ₹84.51 crore from the withheld first installment was also released. This funding supports 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats.

Purpose of Untied Grants

Untied grants enable Panchayati Raj Institutions (PRIs) to address local needs identified under the 29 subjects of the Eleventh Schedule of the Constitution. These grants cannot be used for salaries or administrative costs, ensuring funds are directed towards community-specific projects.

Tied grants focus on essential services such as sanitation, waste management, and drinking water supply. They support initiatives like maintaining Open Defecation Free (ODF) status and rainwater harvesting, ensuring basic infrastructure is prioritised.

Grant Distribution Process

The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend these grants. The Ministry of Finance issues them in two installments annually, facilitating timely access to funds for local bodies.

The Fifteenth Finance Commission grants are crucial for enhancing local governance. They promote accountability and self-reliance among rural communities, thereby strengthening democracy from the grassroots level.

GKToday Notes:

1. Fifteenth Finance Commission (XV FC): The XV FC is responsible for recommending financial allocations to states. It aims to enhance local governance and improve fiscal management in India.
2. Eleventh Schedule: The Eleventh Schedule of the Constitution lists subjects for rural governance. It includes areas like agriculture, rural housing, and drinking water, guiding local development initiatives.
3. Open Defecation Free (ODF): ODF status indicates the absence of open defecation in a community. Achieving ODF is crucial for public health and sanitation, improving living conditions.

Month: Current Affairs - December, 2024

Category: Government Schemes Current Affairs