New Delhi, Dec 24 The Union government has released the second instalment of untied grants for rural local bodies in Uttar Pradesh and Andhra Pradesh for 2024-25 in accordance with the recommendations of the Fifteenth Finance Commission (XV FC), the Finance Ministry announced on Tuesday.
A sum of Rs 1598.80 crore has been released as untied grants for rural local bodies in Uttar Pradesh. These funds are for all eligible 75 District Panchayats, 826 Block Panchayats and 57,691 Gram Panchayats of the state, according to the official statement.
An amount of Rs 420.9989 crore as the second instalment of Untied Grants of the Financial Year 2024-25 along with the withheld amount of the first instalment of Untied Grants for Financial Year 2024–25 amounting to Rs 25.4898 crore have also been released to Andhra Pradesh. These funds are for 13097 eligible duly elected Gram Panchayats, 650 duly elected Block Panchayats and all 13 eligible District Panchayats of the State, it said.
The Union government, through Panchayati Raj and Jal Shakti (Department of Drinking Water and Sanitation) Ministries, recommend the release of Fifteenth Finance Commission (XV FC) Grants to States for Rural Local Bodies which are then released by the Ministry of Finance.
The allocated Grants are recommended and released in two instalments in a Financial Year.
The Untied Grants will be utilised by Panchayati Raj Institutions and Rural Local Bodies for location-specific felt needs, under the 29 subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs.
The tied grants can be used for the basic services of sanitation and maintenance of Open Defecation Free (ODF) status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular. They can also be used for the supply of drinking water, rainwater harvesting and water recycling.
The Centre is channelling Fifteenth Finance Commission Grants directly to Panchayati Raj Institutions, transforming the landscape of rural local governance. This strategic financial empowerment helps to improve local administration, foster accountability, and nurture self-reliance at the village level.
"Aligned with Prime Minister Narendra Modi's vision of 'Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas', this initiative is catalysing inclusive growth while deepening democratic participation at the grassroots. These empowered local institutions are emerging as powerful engines of change, steering India’s journey towards becoming Viksit Bharat – where every village shapes its destiny and contributes to the nation's prosperity," the statement added.
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