Govt Disburses XV Finance Commission Grants for Rural Local Bodies in Haryana, Tripura, and Mizoram

In Haryana, the first installment of untied grants, totaling Rs. 194.867 crores, was allocated to 18 eligible District Panchayats, 139 Block Panchayats, and 5,911 Gram Panchayats across the state.

The Union Government has issued grants under the Fifteenth Finance Commission (XV FC) to the Rural Local Bodies (RLBs) of Haryana, Tripura, and Mizoram for the financial year 2024–25. These grants aim to enhance the effectiveness of Panchayati Raj Institutions (PRIs) in delivering essential services and empowering local self-governance in rural areas. Released in two categories—tied and untied grants—these funds provide flexibility and targeted support for diverse developmental priorities in rural India.

In Haryana, the first instalment of untied grants, totaling Rs. 194.867 crores, was allocated to 18 eligible District Panchayats, 139 Block Panchayats, and 5,911 Gram Panchayats across the state. These funds will address local development needs, enabling each panchayat to implement projects within the 29 Subjects listed under the Eleventh Schedule of the Indian Constitution, excluding costs related to salaries or establishment expenses.

For Tripura, the Union Government released both untied and tied grants in the first instalment. Untied grants amounted to Rs. 31.40 crores, while tied grants reached Rs. 47.10 crores, benefiting the state’s 1,260 Rural Local Bodies, including traditional institutions such as the Tripura Tribal Areas Autonomous District Council (TTAADC), 40 Block Advisory Committees, and 587 Village Committees. The tied grants, specifically aimed at sanitation and water-related services, support the state’s efforts toward maintaining Open Defecation-Free (ODF) status, improving waste management, and providing clean drinking water in rural areas.

In Mizoram, the Union Government released the second instalment of grants for the 2022–23 financial year, comprising Rs. 14.20 crores in untied grants and Rs. 21.30 crores in tied grants. These funds support 834 village councils, including those in Autonomous District Council areas. The funding will be directed towards local projects that address essential rural needs, enhancing Mizoram’s capacity to implement sustainable development initiatives in its village councils.

Tied and Untied Grants: Purpose and Allocation

The untied grants give rural local bodies the flexibility to allocate funds according to local needs across a range of development activities, as specified under the Constitution’s Eleventh Schedule. These funds enable RLBs to address locally identified priorities, driving rural growth through projects that benefit residents directly.

Tied grants, by contrast, are earmarked for specific purposes: sanitation, with an emphasis on maintaining ODF status and handling waste and sludge, and drinking water supply, including initiatives in rainwater harvesting and water recycling. The dual nature of these grants ensures both adaptable local solutions and consistent progress on essential services, contributing to improved rural infrastructure and hygiene standards.

Advancing Rural Development in Line with Inclusive Growth Goals

The XV FC grants align with the government’s overarching commitment to rural development and self-governance, as envisioned in Prime Minister Narendra Modi’s “Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas”. By providing resources to Panchayati Raj Institutions, the government empowers these bodies to become accountable, self-sufficient units that support participatory democracy and sustainable development in rural communities.

Process of Fund Allocation

The Ministry of Panchayati Raj and the Ministry of Jal Shakti’s Department of Drinking Water and Sanitation play key roles in recommending these grants, which are then disbursed by the Ministry of Finance. The grants are structured in two instalments each financial year, ensuring that RLBs have regular access to resources to address both short-term and ongoing development needs.