NewKerala.com

Centre Releases ₹1,536 Crore to Boost Rural Bodies in 8 States

The central government has released over ₹1,536 crore to eight states to strengthen their rural local bodies during the 2025-26 financial year. The funds, allocated under the 15th Finance Commission, include both tied grants for specific services and untied grants for local needs. Rajasthan received the largest portion at ₹466.79 crore, followed by Jharkhand and Telangana. These grants are intended for critical rural services like drinking water supply, sanitation, and waste management.

Key Points: ₹1,536 Crore Released for Rural Local Bodies in 8 States

  • ₹1,536.14 crore released to 8 states
  • Funds part of 15th Finance Commission grants
  • Rajasthan gets largest share of ₹466.79 crore
  • Grants for sanitation, water, and local development
2 min read

Centre releases over Rs 1,536 crore to strengthen rural local bodies in 8 states

Central government disburses over ₹1,536 crore to eight states as tied and untied grants to strengthen Panchayati Raj institutions and rural services.

"The releases cover regular instalments as well as withheld portions pertaining to various financial years. - Ministry of Finance"

New Delhi, April 1

The Centre, on Wednesday, announced the release of more than Rs 1,536.14 crore to strengthen rural local bodies in Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana and Uttarakhand during Financial Year 2025-26 as part of the 15th Finance Commission's tied and untied grants.

The releases cover regular instalments as well as withheld portions pertaining to various financial years.

A sum of Rs 466.79 crore was released for Rajasthan as tied grants, while Jharkhand was given Rs 405.23 crore and Telangana Rs 371. 91 crore.

An amount of Rs 136.58 crore was released for the hill state of Uttarakhand and Rs 53.13 crore for Odisha while Goa and Gujarat got Rs 18.27 crore and Rs 2.98 crore, respectively.

Earlier on March 25, the Centre released more than Rs 1,142 crore to bolster rural local bodies in Madhya Pradesh, Jharkhand, Punjab and Mizoram during FY 2025-26 as part of the 15th Finance Commission's untied grants.

For Madhya Pradesh, a sum of Rs 631.91 crore was released as the second instalment of Untied Grants of FY 2025-26.

Similarly, for Jharkhand, the first instalment of untied grants was released of the FY 2025-26 amounting to Rs 269.03 crore.

In the case of Punjab Rs 222 crore was released as the second instalment of untied grants for FY 2025-26, while Mizoram got an amount of Rs 14.80 crore as the second instalment of untied grants.

The Union government through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of 15th Finance Commission grants to states for Panchayati Raj institutions, which are then released by the Ministry of Finance.

The allocated grants are recommended and released in two instalments in a financial year.

Untied Grants may be utilised by Panchayati Raj institutions and rural local bodies to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs.

Tied grants can be used for the basic services of sanitation and maintenance of ODF (open defecation-free) status, and this should include management and treatment of household waste, and human excreta and faecal sludge management in particular.

These grants can also be used for the supply of drinking water, rainwater harvesting and water recycling.

- IANS

Share this article:

Reader Comments

P
Priyanka N
Good to see funds allocated, but the distribution seems uneven? Rajasthan gets over 466 crore while Gujarat gets only 2.98 crore? There must be a rationale based on population or need, but it's puzzling from the outside.
S
Siddharth J
The focus on ODF status and drinking water is excellent. Many villages still struggle with waste management. Untied grants give panchayats the flexibility to address their most pressing issues. Hope there is strict monitoring.
A
Arun Y
As someone from a village, I can say these funds are vital. But the real challenge is at the block level - will the money be spent wisely or get stuck in bureaucracy? Accountability is key.
M
Michael C
Interesting to see the breakdown. Jharkhand seems to be receiving significant amounts in both announcements. Targeted investment in states with greater development needs makes sense for balanced growth.
K
Kavya N
More power to the panchayats! This is how democracy should function - resources being devolved to the local level. Hope women leaders in panchayats get a strong say in how this money is used. 💪

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50