Centre Allocates Rs.2044 Crore for Rural Local Bodies in UP and AP

The Union Government has allocated financial support for rural local bodies in Uttar Pradesh and Andhra Pradesh for the fiscal year 2024–25, aiming to enhance local governance and empower communities to address their development needs effectively.

Grant Distribution in Uttar Pradesh

In Uttar Pradesh, the second installment of untied grants amounts to ₹1,598.80 crores. This funding targets 75 eligible District Panchayats, 826 Block Panchayats, and 57,691 Gram Panchayats. The grants are designed to provide flexibility in addressing local priorities without restrictions on specific expenditures.

Grant Distribution in Andhra Pradesh

Andhra Pradesh has received a total of ₹446.48 crores in grants. This includes ₹420.99 crores as the second installment of untied grants and ₹25.49 crores from the withheld first installment. The funds are allocated to 13 eligible District Panchayats, 650 Block Panchayats, and 13,097 Gram Panchayats, facilitating local development initiatives.

Role of Ministries in Grant Allocation

The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the distribution of these grants. The Ministry of Finance releases the funds in two instalments each year. This structured approach ensures timely financial support for local governance.

Purpose of Untied and Tied Grants

Untied grants empower Panchayati Raj Institutions (PRIs) to address local needs across 29 subjects listed in the Eleventh Schedule of the Constitution. These grants exclude salaries and administrative costs. Tied grants focus on specific areas such as sanitation, waste management, and improving water supply.

This funding enhances grassroots democracy and enables villages to take charge of their development. It aligns with the Prime Minister’s vision of inclusive growth and self-reliance. These initiatives aim to transform villages into engines of progress, contributing to a prosperous nation.

GKToday Notes:

1. Fifteenth Finance Commission (XV FC): Established to recommend financial distribution between the Union and states. It aims to enhance fiscal decentralisation and improve local governance through targeted grants.
2. Panchayati Raj Institutions (PRIs): Local self-governance bodies in rural India. They empower communities to manage local resources and development, encouraging democratic participation in governance at grassroots levels.
3. Eleventh Schedule: A constitutional provision listing 29 subjects for Panchayati Raj governance. It includes agriculture, rural development, and social welfare, enabling local bodies to address diverse community needs.
4. Viksit Bharat: A vision for a developed India by 2047. It emphasises sustainable growth, inclusive development, and self-reliance, aiming for every village to contribute actively to national prosperity.

Month: Current Affairs - December, 2024

Category: Government Schemes Current Affairs