The Union Government has released Fifteenth Finance Commission (XV FC) Grants during Financial Year 2024–25, for Rural Local Bodies in Karnataka, 1^st installment of Untied Grants amounting to Rs.448.29 crores. These funds are for all eligible 5949 Gram Panchayats of the state.

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 the  Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year.

The Untied Grants will be utilized by Rural Local Bodies (RLBs) for location-specific felt needs, under the Twenty-Nine (29) subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.

The Government of India is taking strong steps to strengthen rural self-governance by providing Fifteenth Finance Commission Grants to Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs). This funding helps in making local governing bodies more effective, responsible, and independent, leading to the sustainable and lasting progress in rural areas. Following Prime Minister Narendra Modi's vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’, this initiative promotes growth that benefits all and encourages people’s participation. These local bodies are key to India’s development and are helping build Viksit Bharat.

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