Why Has the Centre Released Over Rs 723 Crore in Grants for Rural Local Bodies in Rajasthan and Jharkhand?

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Why Has the Centre Released Over Rs 723 Crore in Grants for Rural Local Bodies in Rajasthan and Jharkhand?

Synopsis

The Centre has unveiled over Rs 723 crore in grants to fortify rural local bodies in Rajasthan and Jharkhand. This funding, part of the 15th Finance Commission's first instalment for 2025-26, aims to enhance local governance. With various programs in place, the initiative promises to transform rural administration and community engagement.

Key Takeaways

  • Rs 723 crore allocated for rural local bodies in Rajasthan and Jharkhand.
  • First instalment under the 15th Finance Commission for 2025-26.
  • Funds distributed across district, block, and gram panchayats.
  • Grants can be used for various local development projects.
  • Ministry of Panchayati Raj is enhancing local governance through technology.

New Delhi, Dec 26 (NationPress) The Union Government has allocated more than Rs 723 crore in grants aimed at bolstering the rural local bodies in Rajasthan and Jharkhand. This funding represents the first instalment of untied grants for the financial year 2025-26 as per the 15th Finance Commission, as detailed in a statement from the Ministry of Panchayati Raj released on Friday.

The initial instalment of Untied Grants for FY2025–26, totaling Rs 303.0419 crore, has been designated for 24 eligible district panchayats, 339 block panchayats, and 3,857 gram panchayats in Rajasthan. Additionally, Rs 145.24 crore from the withheld amounts of the first and second instalments of untied grants for FY2024–25 has been disbursed to further eligible rural local bodies in the state.

In Jharkhand, the Union Government has issued the first instalment of Untied Grants for FY 2024–25, amounting to Rs 275.1253 crore. This funding covers all eligible 24 district panchayats, 253 block panchayats, and 4,342 gram panchayats throughout the state.

The Government of India, via the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), endorses the distribution of 15th Finance Commission grants to states for panchayati raj institutions, which are subsequently released by the Ministry of Finance. The allocated grants are typically issued in two instalments during a financial year.

Untied Grants can be utilized by Panchayati Raj institutions and rural local bodies to address specific local needs under the 29 subjects outlined in the Eleventh Schedule, excluding salaries and operational costs. Tied grants are designated for essential services such as sanitation and maintaining ODF (open defecation-free) status, which includes the management and treatment of household waste and human excreta. These grants may also be allocated for drinking water supply, rainwater harvesting, and water recycling initiatives.

Earlier in November, the Centre released over Rs 223 crore for rural local bodies in Assam and an additional Rs 444.38 crore to empower panchayats in Odisha as part of the 15th Finance Commission grants.

Moreover, the Ministry of Panchayati Raj has initiated several programs, including SabhaSaar—an AI-driven tool for documenting and summarizing Gram Sabha sessions, SVAMITVA for digital land mapping and property rights, and eGramSwaraj for comprehensive online planning, accounting, and monitoring. Additionally, Gram Manchitra has been introduced for geo-spatial planning. These platforms enhance transparency and efficiency while empowering citizens to engage more actively in local governance.

Point of View

Such initiatives are crucial for fostering sustainable growth and enhancing citizen participation in governance.
NationPress
26/12/2025

Frequently Asked Questions

What is the purpose of the Rs 723 crore grants?
The grants aim to strengthen rural local bodies in Rajasthan and Jharkhand, enabling them to address specific local needs and improve governance.
How are the grants allocated?
The grants are allocated to eligible district, block, and gram panchayats as part of the 15th Finance Commission's funding for rural development.
What can the Untied Grants be used for?
Untied Grants can be utilized for various local needs as defined in the Eleventh Schedule, excluding salaries and establishment costs.
Which states are receiving these grants?
The grants are specifically allocated to rural local bodies in Rajasthan and Jharkhand in this instance.
How do these grants impact rural governance?
These grants enhance local governance by providing necessary funds for infrastructure, sanitation, and community services, thereby improving the quality of life for residents.
Nation Press