Rural local bodies in Rajasthan and Jharkhand are set to receive a significant boost with the release of over ₹723 crore from the central government. This allocation, guided by the 15th Finance Commission, is intended to enhance local governance and drive development initiatives across these states.
Rajasthan’s rural administration will benefit from ₹303.04 crore as the initial untied grant for the 2025-26 fiscal year. This funding will reach 24 district panchayats, 339 block panchayats, and 3,857 gram panchayats. An additional ₹145.24 crore from previously unreleased grants for FY 2024-25 has also been disbursed to relevant bodies.
For Jharkhand, the government has released ₹275.13 crore as the first installment of untied grants for FY 2024-25. This funding is earmarked for all 24 district panchayats, 253 block panchayats, and 4,342 gram panchayats, supporting a wide array of local projects.
These grants, managed through the Ministry of Panchayati Raj and Ministry of Jal Shakti, with disbursement by the Ministry of Finance, are released biannually. The “untied” grants offer local authorities the freedom to allocate funds towards community needs across 29 constitutional subjects, excluding personnel costs. Meanwhile, “tied” grants are directed towards specific goals like improving sanitation, managing waste, and bolstering water supply and conservation efforts.