Govt Disburses 15th Finance Commission Grants for Rural Local Bodies in Kerala and Meghalaya

The XV FC Grants play a pivotal role in strengthening Panchayati Raj Institutions (PRIs) and RLBs, enabling them to become more capable, accountable, and self-reliant.

The Union Government has released the Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies (RLBs) in Kerala and Meghalaya during the Financial Year 2024–25. Kerala received the 2nd instalment of untied grants amounting to ₹266.80 crore, allocated to all 14 District Panchayats, 152 Block Panchayats, and 941 Gram Panchayats across the state. For Meghalaya, the 1st instalment of untied grants, amounting to ₹27.00 crore, has been released for the eligible Autonomous District Councils (Khasi, Garo, and Jaintia) for the Financial Year 2021–22.

These funds, recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, are released by the Ministry of Finance in two instalments annually. Untied grants empower Rural Local Bodies to address location-specific needs in the 29 subjects outlined in the Eleventh Schedule of the Constitution, excluding salary and other establishment costs. Tied grants, on the other hand, support essential services, including sanitation, maintenance of Open Defecation-Free (ODF) status, waste management, faecal sludge treatment, and ensuring access to safe drinking water, water recycling, and rainwater harvesting initiatives.

The XV FC Grants play a pivotal role in strengthening Panchayati Raj Institutions (PRIs) and RLBs, enabling them to become more capable, accountable, and self-reliant. This initiative aligns with Prime Minister Narendra Modi's vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ and aims to foster inclusive growth and participatory governance. By empowering PRIs and RLBs, the government seeks to promote sustainable development across rural India, reinforcing these institutions as fundamental pillars of the nation's progress.

Expanding the Reach of Finance Commission Grants for Rural Transformation

In addition to enabling RLBs to meet location-specific needs, these grants are seen as vital in achieving the government’s vision of a developed India, or "Viksit Bharat." Rural areas across India are being empowered to invest in essential services, creating cleaner, safer, and more resilient communities. Further, the government has placed a strong emphasis on digital governance and accountability, encouraging local bodies to leverage technology to enhance transparency, monitoring, and reporting on the utilization of funds.

Through this targeted financial support, the Union Government is not only empowering rural self-governance but also fostering long-term improvements in public health, environmental sustainability, and water security in rural areas, ensuring that India’s rural regions contribute robustly to the nation’s development trajectory.