The Union Government has released the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Tripura and Karnataka for the financial year 2024–25, strengthening local governance and driving rural transformation. In Tripura, the government has allocated Rs. 31.1259 crores in Untied Grants (2nd installment), benefiting 589 eligible Gram Panchayats, along with all Block Panchayats, District Panchayats, and Traditional Local Bodies. While for Karnataka, Rs. 404.9678 crores in Untied Grants (2nd installment) has been released for 5375 eligible Gram Panchayats, supporting rural local bodies across the state.
These grants empower Panchayati Raj Institutions (PRIs) enabling them to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution. These funds are utilized for development initiatives excluding salaries and establishment costs. The grants are divided into two categories:
- Untied Grants: These can be used for diverse community-specific needs and are aimed at enhancing local infrastructure and development projects.
- Tied Grants: Specifically allocated for the critical areas of sanitation (including the maintenance of Open Defecation Free status, waste management, and fecal sludge management) and drinking water (including rainwater harvesting and water recycling).
The release of these funds is a significant move toward decentralizing resources and empowering local governments. Managed by the Ministry of Panchayati Raj and Ministry of Jal Shakti, the XV Finance Commission Grants are designed to drive grassroots development, enhance local governance, and support initiatives tailored to the unique needs of rural communities.
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Aditi Agrawal
