The Indian government has allocated over ₹723 crore to bolster rural local bodies in Rajasthan and Jharkhand. This significant financial release, facilitated by the 15th Finance Commission, aims to empower these local governance structures. The funds are intended to support essential development initiatives at the grassroots level.

Rajasthan will receive ₹303.04 crore as the initial tranche for the 2025-26 fiscal year. These funds will be distributed across 24 district panchayats, 339 block panchayats, and 3,857 gram panchayats. Furthermore, an additional ₹145.24 crore, part of previously withheld grants from FY 2024-25, has been disbursed to eligible rural entities within the state.

Jharkhand’s rural local bodies will benefit from ₹275.13 crore, also as part of the first installment for FY 2024-25. This funding is designated for all 24 district panchayats, 253 block panchayats, and 4,342 gram panchayats, underscoring a broad commitment to local development.

These grants, recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, are disbursed through the Ministry of Finance. They are typically issued in two annual installments. Crucially, these “untied” grants offer flexibility, allowing local bodies to address specific community needs across 29 constitutionally listed subjects, excluding operational costs like salaries. “Tied” grants, conversely, are designated for critical areas such as sanitation, waste management, and water supply, ensuring progress in vital public services.