The central government has disbursed over Rs 723 crore to bolster rural local bodies in Rajasthan and Jharkhand. This significant financial injection, channeled through the 15th Finance Commission, aims to strengthen governance and development at the grassroots level. The funds are being released as the first installment of untied grants for the fiscal year 2025-26, empowering local bodies to address their unique development priorities. Rajasthan is set to receive Rs 303.04 crore, benefiting its district, block, and gram panchayats. Additionally, previously withheld grants from the previous fiscal year have also been released to eligible rural entities in the state. Jharkhand will also benefit from this initiative, receiving Rs 275.13 crore for its panchayats. These untied grants offer flexibility, allowing rural local bodies to allocate funds towards essential local needs, excluding administrative costs. The Ministry of Panchayati Raj oversees the distribution of these crucial funds, which are later disbursed by the Ministry of Finance. This move follows similar allocations to rural bodies in Assam and Odisha in recent months, underscoring a national commitment to strengthening local governance.
