15th Finance Commission Grants Released for RLBs in UP and Andhra Pradesh

The Government of India Allocates Significant Funds for Rural Local Bodies to Drive Development and Strengthen Local Democracy.

In a significant move towards empowering grassroots governance and promoting inclusive growth, the Union Government has released the Fifteenth Finance Commission (XV FC) Grants for the Financial Year 2024–25. These funds are aimed at supporting Rural Local Bodies (RLBs) in states such as Uttar Pradesh and Andhra Pradesh, contributing to the decentralized administration and the self-reliance of local institutions. Release of Untied Grants for Uttar Pradesh and Andhra Pradesh:

Uttar Pradesh has received the second installment of the Untied Grants under the XV FC for Rural Local Bodies, amounting to Rs. 1598.80 crores. These funds will be distributed across 75 District Panchayats, 826 Block Panchayats, and 57,691 Gram Panchayats in the state, ensuring equitable development at the grassroots level.

Similarly, Andhra Pradesh has also been allocated its second installment of Untied Grants amounting to Rs. 420.9989 crore. In addition, the withheld amount from the first installment of the Untied Grants for the 2024–25 financial year, totaling Rs. 25.4898 crore, has also been released. These funds will be utilized by 13 District Panchayats, 650 Block Panchayats, and 13,097 duly elected Gram Panchayats in the state.

Role of Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs)

These Untied Grants are meant to be used by Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) for location-specific needs and development initiatives across 29 subjects listed in the Eleventh Schedule of the Constitution. The grants cannot be used for salaries or other establishment costs, but are instead directed towards projects and needs that promote sustainable development and local welfare.

Focus Areas for Tied Grants

In addition to the Untied Grants, the Tied Grants have been allocated for specific purposes:

• Sanitation and maintenance of Open Defecation Free (ODF) status, including the management of household waste, human excreta, and fecal sludge.
• Supply of drinking water, including initiatives related to rainwater harvesting and water recycling.

These funds are essential in ensuring that rural areas are equipped with the necessary infrastructure to support health and hygiene and safe drinking water, thereby directly contributing to the well-being of rural communities.

A Landmark Step Toward Empowering Local Governance

The release of the Fifteenth Finance Commission Grants represents a landmark shift in how funds are allocated to local governance. By directly channeling these grants to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs), the Government of India is fostering greater accountability, transparency, and self-reliance at the village level.

This initiative aligns with the Hon’ble Prime Minister's vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’, creating an inclusive environment that allows every village to contribute to national progress. The strategic allocation of grants to local governments strengthens democratic participation and empowers rural communities to manage their own development.

Empowering Local Institutions for a Viksit Bharat

The disbursement of the XV FC Grants marks a transformative moment in India's journey toward becoming a Viksit Bharat (Developed India). Empowering local institutions enables them to be the engines of change, driving development from the grassroots up. This will help India achieve its goal of inclusive growth, where every village shapes its own future and contributes to the nation’s prosperity.

With this step, India is moving towards a future where local self-governance is the backbone of sustainable development, setting the stage for a more democratic, accountable, and prosperous India.