The Union Government marked a significant step forward in decentralizing power by releasing over ₹1,789 crore in untied grants to rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra. Announced Tuesday from New Delhi, this funding from the 15th Finance Commission aims to fortify PRIs/RLBs during FY 2025-26.
Untied grants empower panchayats to tackle pressing local issues, fostering accountable and responsive governance at the village level. This move aligns with India’s push for stronger federalism and self-reliant rural economies.
Breaking down the allocations: Chhattisgarh’s ₹232.60 crore second instalment covers every eligible DP, BP, and GP in the state. Released withheld funds add ₹8.0238 crore for select bodies.
Gujarat secures the lion’s share at ₹509.2177 crore for its extensive network of 33 DPs, 247 BPs, and over 14,500 GPs, with minor additional releases.
In Madhya Pradesh, the first instalment of ₹630.6454 crore supports a vast array of panchayats, supplemented by ₹104.6556 crore from prior year holdbacks.
Telangana benefits from ₹256.2101 crore targeting thousands of GPs, while Maharashtra gets ₹151.1856 crore to clear pending dues for its rural institutions.
Grants are structured in biannual releases, with untied portions usable for non-salary needs and tied grants dedicated to core infrastructure like solid and liquid waste management, drinking water, and sanitation maintenance.
Experts hail this as a timely intervention, poised to drive improvements in rural health, hygiene, and habitat quality. As these funds flow to the grassroots, they promise transformative change for rural India.