Govt Releases ₹448.29 Crores XV-FC Grants for Karnataka Gram Panchayats

Grants to support critical sanitation, water supply, and community-driven projects, advancing PM Modi’s vision of inclusive growth.

The Union Government has disbursed the first installment of ₹448.29 crores as Untied Grants under the Fifteenth Finance Commission (XV-FC) for the 2024–25 fiscal year. These funds are directed toward 5,949 eligible Gram Panchayats across Karnataka, furthering rural development and infrastructure improvements.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend XV-FC grants for Rural Local Bodies (RLBs), which are subsequently released by the Ministry of Finance. These grants aim to empower local governing institutions by addressing critical, location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Indian Constitution.

Utilization of XV-FC Grants

The grants are categorized into two components:

Untied Grants: These funds address specific community needs while excluding salaries and establishment costs.

Tied Grants: These are reserved for essential services such as:

Sanitation and maintaining Open Defecation-Free (ODF) status, including solid waste management and fecal sludge treatment.

Water supply initiatives such as rainwater harvesting and water recycling.

Boosting Self-Governance and Sustainability

The funding underscores the Union Government’s commitment to empowering Rural Local Bodies (RLBs) and Panchayati Raj Institutions (PRIs), fostering decentralized governance, and enabling communities to actively participate in development. This initiative aligns with Prime Minister Narendra Modi's vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’, promoting equitable growth and self-reliant villages.

Supporting Karnataka’s Development Goals

The allocation is a step toward achieving Karnataka’s rural development goals, focusing on sustainable infrastructure, improved sanitation, and water management. By addressing grassroots-level challenges, these grants aim to enhance the quality of life, improve health outcomes, and ensure equitable access to basic amenities in rural areas.

Wider Implications for Rural Development in India

Nationwide, XV-FC grants play a critical role in ensuring that rural areas receive the resources and autonomy necessary for holistic development. By enabling local bodies to plan and execute projects tailored to their specific needs, the initiative not only strengthens self-governance but also ensures transparency and accountability at the grassroots level.

As a part of the broader mission to build Viksit Bharat (Developed India), these efforts pave the way for sustainable development and inclusive growth in the country's rural heartland.