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Centre Releases Rs 3,324 Crore to Boost Rural Local Bodies in 5 States

The Union government has released over Rs 3,324 crore as the second instalment of untied grants from the 15th Finance Commission for the 2025-26 financial year. The funds are allocated to strengthen rural local bodies in Bihar, Uttar Pradesh, West Bengal, Haryana, and Himachal Pradesh. The grants are intended for location-specific development needs across 29 subjects, excluding salaries. They can also be used for basic services like sanitation, drinking water supply, and waste management.

Key Points: Rs 3,324 Crore Released for Rural Bodies in 5 States

  • Rs 3,324 crore released
  • Second instalment of 15th Finance Commission grants
  • Funds for Bihar, UP, West Bengal, Haryana, HP
  • Grants for sanitation, water, local development
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Centre releases over Rs 3,324 crore to strengthen rural local bodies in 5 states

Union govt releases over Rs 3,324 crore to strengthen panchayats in Bihar, UP, West Bengal, Haryana, and Himachal Pradesh as 15th Finance Commission grants.

"Untied grants may be utilised by Panchayati Raj institutions to meet location-specific needs - Ministry Officials"

New Delhi, Feb 13

The Union government has announced the release of more than Rs 3,324 crore to strengthen rural local bodies in Bihar, Uttar Pradesh, Haryana, Himachal Pradesh and West Bengal as part of the second instalment of the 15th Finance Commission's untied grants for financial year 2025-26, government officials said.

Under this tranche, Bihar has received Rs 802.40 crore benefiting all 38 district panchayats, 533 block panchayats and 8,053 gram panchayats, along with an additional release of Rs 1.39 crore from the withheld portion of the first instalment that has since become eligible, officials on Thursday added.

Similarly, Uttar Pradesh has received Rs 1,559.40 crore for all 75 district panchayats, 826 block panchayats and 57,694 gram panchayats, in addition to Rs 11.016 crore released from the withheld portion that also become eligible.

West Bengal has also been allocated Rs 680.86 crore for eligible 21 district panchayats, 335 block panchayats and 3,225 gram panchayats under the same instalment.

Haryana has been provided Rs 197.627 crore for various panchayats with a further Rs 2.5 crore released to additionally eligible local bodies from the earlier withheld amount.

For Himachal Pradesh, the allocation stands at Rs 68.30 crore supplemented by Rs 0.35 crore released to 26 newly eligible gram panchayats, officials said.

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, officials added.

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

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Reader Comments

P
Priya S
Good to see UP and Bihar getting significant allocations. These states have a huge rural population and need this infrastructure boost. Hope the gram panchayats use it wisely for drinking water and waste management. 🙏
R
Rahul R
While releasing funds is one thing, ensuring they are not misused is another. There needs to be a robust monitoring system with public audits. We've seen funds disappear before. Let's hope for better accountability this time.
A
Anjali F
Focusing on ODF status and waste management is crucial. Many villages became ODF but struggle with sustained sanitation. This tied grant for maintenance is very important. Public health will improve.
M
Michael C
Interesting to see the breakdown. The per-panchayat amount might be small given the scale, but every bit helps. The 'untied' part is good—allows villages to fix their most pressing issue, whether it's a school roof or a water tank.
K
Kavya N
As someone from a Himachal village, I welcome this. Even 68 crore can make a difference for our panchayats. Hope it's used for rainwater harvesting projects in the hills. We need to conserve every drop! đź’§

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