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Centre Releases ₹1,500+ Crore to Boost Rural Governance in 6 States

The Union Government has released over ₹1,500 crore as the 15th Finance Commission grants to strengthen rural local bodies in six states. The funds include both tied and untied grants for Panchayati Raj Institutions in Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya. The grants are intended to empower grassroots governance and facilitate need-based development projects at the local level. Specific allocations have been detailed for each state, covering thousands of Gram Panchayats, Block Panchayats, and District Panchayats.

Key Points: Govt Releases ₹1,500+ Crore for Rural Local Bodies in 6 States

  • ₹1,500+ crore released
  • Funds for 6 states
  • Untied & tied grants for PRIs
  • Aimed at local development
3 min read

Govt releases over Rs 1,500 crore to boost rural local governance in 6 states

The Centre has sanctioned over ₹1,500 crore in Finance Commission grants to empower Panchayati Raj Institutions in Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya.

"to further empower grassroots governance and enable need-based local development - Ministry of Panchayati Raj"

New Delhi, March 31

The government on Tuesday said it has released more than Rs 1,500 crore as the 15th Finance Commission grants to strengthen rural local governance in six states.

The Centre sanctioned and released tied and untied grants during FY 2025-26 for Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram and Meghalaya to further empower grassroots governance and enable need-based local development.

For Telangana, Rs 247.94 crore has been released as the first installment of untied grants of the financial year 2025-26. These funds are for eligible 12,600 Gram Panchayats (GPs) of the state.

Similarly, for Uttarakhand, Rs. 91.31 crore has been released as second installment of untied grants of the financial year 2025-26, benefiting all 13 District Panchayats (DPs), 95 Block Panchayats (BPs) and eligible 7784 GPs.

Further, Rs 1.84 crore of withheld portion of first instalment of untied grants for FY 2025-26 has also been released to additionally eligible 216 GPs, said the Ministry of Panchayati Raj.

About Rs 315.61 crore has been released for Rajasthan as second installment of untied grants of the financial year 2025-2026. These funds are for all 33 DPs, all 352 BPs and eligible 3857 GPs of the state.

Further, Rs 12.57 crore of withheld portion of first instalment of untied grants for FY 2025-26 has also been released to additionally eligible 9 Zilla Panchayats and 13 BPs.

Similarly, Meghalaya has received Rs 27 crore as 2nd installment of untied grants of the financial year 2021-22. These funds are for all 3 eligible Autonomous District Councils (Khasi, Garo, Jaintia) of the State.

Further, the Union Government has released 2nd installment of tied grants to Meghalaya amounting to Rs.22.20 crore. These funds are for all 816 eligible Village Councils including Autonomous District Council areas of the State, said the ministry.

For Maharashtra, the Centre has released Rs 109.06 crore each as the withheld portions of the 1st and 2nd instalments of tied grants, benefiting an additional 12 eligible DPs and 125 BPs.

In addition, Maharashtra has also received Rs 116.97 crore as the withheld portion of the 1st instalment for FY 2024-25, covering an additional 12 DPs, 125 BPs and 27 GPs.

"While Rs. 329.21 crore has been released as the withheld portion of the 2nd instalment of Tied Grants for FY 2024-25 to an additional 12 DPs, 125 BPs and 5,249 GPs. Further, Rs. 72.70 crore each has been released as the withheld portions of the 1st and 2nd instalments of XV FC Untied Grants for FY 2025-26, benefiting the same set of 12 DPs and 125 BPs," informed the ministry.

- IANS

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Reader Comments

S
Sarah B
As someone who has worked with rural communities, the release of untied grants is crucial. It allows villages to decide their own priorities. However, the article mentions "withheld portions" being released. Transparency about why funds were withheld in the first place would build more trust.
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Priyanka N
Good to see North-Eastern states like Mizoram and Meghalaya included. Often development funds are concentrated in bigger states. Empowering local bodies in these regions is key for balanced growth across India. Jai Hind!
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Aman W
₹1,500 crore sounds like a lot, but when divided across so many Panchayats in six large states, is it enough? The needs are massive. Hope this is just one part of a sustained funding strategy and not a one-time headline.
K
Kavitha C
My village in Telangana could really use this. Our Gram Panchayat has been waiting for funds to repair the primary school building. I just hope the process is smooth and there's no "cut" or delay at the local level. Fingers crossed.
M
Michael C
The detailed breakdown for each state is appreciated. It shows where the money is going. The challenge now is implementation. Strong local leadership and citizen participation in planning will determine the success of this initiative.

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

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