Centre Releases First Instalment of Finance Commission Grant for Local Bodies in Andhra Pradesh and Rajasthan.

The Union Government has released the first instalment of grants from the 15th Finance Commission for the fiscal year 2024-25 to Rural Local Bodies (RLBs) in Andhra Pradesh and Rajasthan, according to a statement from the Panchayati Raj Ministry.

Andhra Pradesh has received a total of ₹395.50 crore in untied grants and ₹593.26 crore in tied grants. These funds will benefit nine eligible district panchayats, 615 eligible block panchayats, and 12,853 eligible gram panchayats across the state.

In Rajasthan, the government allocated untied grants of ₹507.11 crore and tied grants of ₹760.67 crore for 22 eligible district panchayats, 287 eligible block panchayats, and 9,068 eligible gram panchayats.

The untied grants are designed to help panchayats address specific local needs across 29 subjects outlined in the 11th Schedule of the Constitution, including agriculture, rural housing, education, and sanitation. However, these funds cannot be used for salaries or establishment costs.

The tied grants will focus on essential services such as sanitation, maintaining open-defecation-free (ODF) status, and water management initiatives, including rainwater harvesting, water recycling, and the treatment of household waste.

These financial allocations, in accordance with Article 243G of the Constitution, empower panchayats to manage critical services and infrastructure, the ministry stated.

HBL