A significant financial boost of over ₹723 crore has been released by the central government to support and strengthen rural local bodies in Rajasthan and Jharkhand. Under the framework of the 15th Finance Commission, these grants are crucial for fostering local development and governance. Rajasthan is receiving ₹303.04 crore as the first installment of untied grants for the fiscal year 2025-26, which will be distributed across 3,857 gram panchayats, 339 block panchayats, and 24 district panchayats. Furthermore, an additional ₹145.24 crore from withheld portions of previous grants (FY 2024-25) has also been disbursed to eligible rural entities in Rajasthan.
Jharkhand’s rural local bodies are set to receive ₹275.13 crore as the first installment of untied grants for FY 2024-25. This funding will reach all 4,342 gram panchayats, 253 block panchayats, and 24 district panchayats within the state. The Ministry of Panchayati Raj spearheads the process for releasing these grants, which are essential for addressing local needs. These financial resources are typically released twice a year. Untied grants offer flexibility for local bodies to invest in various development projects, excluding administrative costs, while tied grants are designated for specific sectors like sanitation, water resources, and environmental sustainability.