The Union government has allocated over ₹723 crore in grants to bolster rural local bodies in Rajasthan and Jharkhand. This significant financial injection, channeled through the 15th Finance Commission, aims to enhance the capabilities of these grassroots governance structures. Rajasthan is set to receive ₹303.04 crore as the initial tranche for the fiscal year 2025-26. This funding will benefit a vast network of 24 district panchayats, 339 block panchayats, and 3,857 gram panchayats across the state. Additionally, a portion of previously withheld grants for FY 2024-25, amounting to ₹145.24 crore, has also been released to eligible rural bodies in Rajasthan.
Jharkhand will benefit from ₹275.13 crore in untied grants for the fiscal year 2024-25. These funds are designated for all 24 district panchayats, 253 block panchayats, and 4,342 gram panchayats. The Ministry of Panchayati Raj oversees the recommendation and disbursement of these crucial grants, which are vital for local development initiatives. The grants are typically released in two installments annually, with untied funds offering flexibility for local needs, excluding operational costs like salaries. Tied grants, conversely, are specifically allocated for critical areas such as sanitation, water management, and waste disposal, ensuring progress in essential services.
