Did the Centre Disburse Over Rs 2,400 Crore in Grants to Rural Local Bodies of Bihar, Himachal, & UP?
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Synopsis
The Centre's recent allocation of over Rs 2,400 crore in grants under the 15th Finance Commission marks a significant boost for rural local bodies in Bihar, Himachal Pradesh, and Uttar Pradesh. This funding aims to enhance local governance and improve service delivery in these regions.
Key Takeaways
- Rs 2,400 crore allocated to rural local bodies.
- Grants aim to enhance local governance.
- Funding supports various development initiatives.
- Allotted in two instalments per financial year.
- Empowers citizens and improves service delivery.
New Delhi, Sep 25 (NationPress) The Union Government has distributed more than Rs 2,400 crore as the inaugural instalment of untied grants under the 15th Finance Commission for the fiscal year 2025–26 to rural local bodies in Bihar, Himachal Pradesh, and Uttar Pradesh, as stated by the Ministry of Panchayati Raj on Thursday.
Bihar has been allocated Rs 801.009 crores for 38 eligible District Panchayats, 530 Block Panchayats, and 8,046 Gram Panchayats. Meanwhile, Himachal Pradesh is set to receive Rs 67.955 crore for all 12 District Panchayats, 80 eligible Block Panchayats, and 3,576 Gram Panchayats. Uttar Pradesh has received a substantial Rs 1,548.3836 crore for 73 eligible District Panchayats, 813 Block Panchayats, and 57,633 Gram Panchayats, as per the statement.
The Centre, via the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), advises the distribution of Finance Commission grants to states for rural local bodies/Panchayati Raj Institutions, which are subsequently released by the Ministry of Finance. The grants disbursed are recommended and provided in two instalments within a financial year.
The untied grants are intended for use by Rural Local Bodies/Panchayati Raj Institutions to address specific local needs, covering the 29 subjects outlined in the Eleventh Schedule of the Constitution, except for salaries and other administrative expenses.
The tied grants are designated for essential sanitation services and maintaining ODF (Open Defecation Free) status, focusing on the management and treatment of household waste, human excreta, and particularly faecal sludge management. These grants also cover drinking water supply, rainwater harvesting, and water recycling, according to the statement.
The objective of the grants is to bolster local governance and ensure efficient service delivery in rural areas.
The Ministry of Panchayati Raj has introduced various initiatives such as SabhaSaar - an AI-driven tool for documenting and summarising Gram Sabha discussions, SVAMITVA for digital land mapping and property rights, and eGramSwaraj for comprehensive online planning, accounting, and monitoring. Additionally, Gram Manchitra has been launched for geo-spatial planning, significantly transforming the operational dynamics of panchayats. These platforms enhance transparency and efficiency while empowering citizens to engage more actively in local governance. By August 2025, 2.63 crore property cards have been issued in 1.73 lakh villages, and by July 2025, drone surveys have been conducted in 3.23 lakh villages, the statement detailed.
Approximately 2.54 lakh Gram Panchayats have uploaded their Gram Panchayat Development Plan (GPDP) on the eGramSwaraj portal, while 2.41 lakh Gram Panchayats have accomplished online transactions for the 15th Finance Commission grants.
Point of View
The allocation of grants under the 15th Finance Commission illustrates the government's commitment to enhancing rural infrastructure and governance. The disbursement underscores the importance of local bodies in fostering development and improving service delivery in rural areas, aligning with the nation’s broader goals of sustainable growth and empowerment.
NationPress
25/09/2025
Frequently Asked Questions
What is the purpose of the grants allocated by the Centre?
The grants aim to strengthen local governance and ensure effective service delivery in rural areas, allowing local bodies to address specific community needs.
Which states are receiving these grants?
The states receiving these grants include Bihar, Himachal Pradesh, and Uttar Pradesh.
What can the grants be used for?
The untied grants can be utilized for various local projects, while tied grants focus on sanitation services and drinking water supply.
How are the grants released?
The grants are recommended and released in two instalments within a financial year by the Ministry of Finance.
What initiatives has the Ministry of Panchayati Raj launched?
The ministry has introduced several initiatives like SabhaSaar, SVAMITVA, and eGramSwaraj to enhance transparency and efficiency in panchayat functioning.
