In a move to empower grassroots governance, the Union government has released more than Rs 723 crore to rural local bodies in Rajasthan and Jharkhand. These funds, provided under the 15th Finance Commission, are crucial for strengthening the capacity of local self-government institutions. The latest disbursement includes the first installment of untied grants for the fiscal year 2025-26. Rajasthan’s rural local bodies will benefit from Rs 303.04 crore, distributed across various panchayat levels, along with Rs 145.24 crore from withheld funds of the previous financial year. Jharkhand will receive Rs 275.13 crore, intended for its district, block, and gram panchayats. These untied grants offer vital flexibility, allowing these bodies to invest in essential local development projects and services, as per the guidelines stipulated in the Eleventh Schedule of the Constitution, excluding staff salaries and operational overheads. This financial aid is instrumental in facilitating localized development and enhancing service delivery. The Ministry of Panchayati Raj, in collaboration with other ministries, facilitates these crucial grants.
