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Centre Releases ₹1,789 Crore to Boost Rural Local Bodies in 5 States

The central government has released over ₹1,789 crore in untied grants to rural local bodies in five states: Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra. These funds, allocated under the 15th Finance Commission, aim to strengthen rural governance and cover installments for various financial years. The grants are intended for location-specific needs, excluding salaries, with tied grants specifically for sanitation and drinking water services. This financial support will benefit thousands of District, Block, and Gram Panchayats across the recipient states.

Key Points: ₹1,789 Crore Released for Rural Local Bodies in 5 States

  • Funds for rural governance
  • Covers five major states
  • Grants for sanitation and water
  • Strengthens Panchayati Raj Institutions
2 min read

Centre releases over Rs 1,789 crore to strengthen rural local bodies in 5 states

The Centre has disbursed over ₹1,789 crore in untied grants to strengthen Panchayati Raj Institutions in Chhattisgarh, Gujarat, MP, Telangana & Maharashtra.

"The Untied Grants will be utilised by RLBs for location-specific felt needs - Ministry of Panchayati Raj"

New Delhi, March 17

The government on Tuesday said it has released more than Rs 1,789 crore under the 15th Finance Commission grants to strengthen rural local bodies in five states.

The Centre released Untied Grants for Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana and Maharashtra during FY 2025-26.

This release covers allocations pertaining to different financial years and aims to further strengthen rural local governance.

In Chhattisgarh, the second installment of Untied Grants amounting to Rs 232.60 crore has been released for all eligible 33 District Panchayats (DPs), 146 Block Panchayats (BPs) and 11,693 Gram Panchayats (GPs).

Additionally, Rs 8.0238 crore of the withheld portion of the first installment have been released to 1 DP, 8 BPs and 350 GPs.

Similarly, Gujarat has received Rs 509.2177 crore as the second installment covering 33 DPs, 247 BPs and 14,563 GPs, along with Rs 14.64 lakh of the withheld portion released to 2 additional GPs, said the Ministry of Panchayati Raj.

For Madhya Pradesh, Rs 630.6454 crore have been released as the first installment of Untied Grants for 51 DPs, 296 BPs and 22,914 GPs along with Rs 104.6556 crore of the withheld portion of the 1st and 2nd installments for FY 2023-24 to additionally eligible 21 DPs, 106 BPs and 834 GPs.

Meanwhile, in Telangana, Rs 256.2101 crore have been released as the second installment (for FY 2024-25) covering 12,702 GPs.

Maharashtra has received Rs 151.1856 crores as the withheld portion of the 1st and 2nd installments for FY 2022-23, benefiting 12 DPs, 125 BPs and 324 GPs.

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

The Untied Grants will be utilised by RLBs for location-specific felt needs, except for salaries and other establishment costs.

The Tied Grants can be used for the basic services of sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and faecal sludge management, in particular, and supply of drinking water, rainwater harvesting and water recycling.

- IANS

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Reader Comments

P
Priya S
Good to see funds being released, especially the focus on sanitation and drinking water. But the article mentions "withheld portions" from previous years. Why are funds withheld in the first place? This creates delays in critical rural projects.
R
Rohit P
As someone from a village in MP, I hope this money actually reaches the ground. Too often, funds get stuck at district or block level. Direct benefit to 22,914 GPs in MP sounds great, but implementation is key. Fingers crossed!
A
Aman W
Strengthening local bodies is the way forward for real development. Decentralisation of power and funds is essential. Hope other states also get their due shares soon. The 15th Finance Commission grants are crucial for village infrastructure.
M
Michael C
Interesting to see the detailed breakdown by state and panchayat. The scale is massive - over 11,000 Gram Panchayats in Chhattisgarh alone. The challenge will be ensuring effective use and preventing corruption at the local level.
N
Nisha Z
The focus on "location-specific felt needs" is good. A village in Maharashtra might need a check dam, while one in Telangana needs a water purification plant. Local leaders know best. Hope women in Panchayats have a strong say in how this money is spent.

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

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