The Union Government has released the first instalment of the Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25 to the Rural Local Bodies (RLBs) in Andhra Pradesh and Rajasthan. Andhra Pradesh has received untied grants amounting to ₹395.5091 crores and tied grants totalling ₹593.2639 crores. These funds are for duly elected 9 eligible District Panchayats, 615 eligible Block Panchayats, and 12,853 eligible Gram Panchayats in Andhra Pradesh. While in Rajasthan, untied grants of ₹507.1177 crores and tied grants of ₹760.6769 crores have been released for the duly elected 22 eligible District Panchayats, 287 eligible Block Panchayats and 9,068 eligible Gram Panchayats in the state.

Utilizing Untied and Tied Grants for Empowering Local Governance

The untied grants will enable Panchayats to address specific local needs across 29 subjects under the Eleventh Schedule of the Constitution of India, ranging from agriculture and rural housing to education and sanitation. These funds, however, cannot be used for salaries or establishment costs. The tied grants will focus on core services such as sanitation, maintenance of open-defecation free (ODF) status and water management, including rainwater harvesting, water recycling, and treatment of household waste.

Strengthening Grassroots Democracy for Inclusive Growth

In line with Article 243G of the Indian Constitution, these funds empower Panchayats to manage essential services and infrastructure. The provision of tied grants has presented a significant opportunity for Gram Panchayats to redefine local self-governance in alignment with Mahatma Gandhi's vision of ‘Gram Swaraj’, fostering the development of responsible and responsive leadership at the grassroots level. This empowerment process resonates with the Government’s guiding principle of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’ as articulated by  Prime Minister Narendra Modi, emphasizing a firm commitment towards achieving the goal of “Viksit Bharat”. By enhancing local governance, these funds contribute to the inclusive growth and sustainable rural development, reinforcing India’s commitment to participatory democracy and village-level progress.

Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC Grants to States for Rural Local Bodies which are then released by Ministry of Finance. The allocated Grants are recommended and released in 2 instalments in a financial year.

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