Centre releases Rs 1,440 crore as grants for rural local bodies in five states

IANS April 3, 2025 228 views

The Indian government has strategically released Rs 1,440 crore in rural development grants across five states. These funds, recommended by the Fifteenth Finance Commission, aim to strengthen local governance and infrastructure. Madhya Pradesh received the largest allocation of Rs 651 crore, followed by Gujarat with Rs 508 crore. The grants will support critical local development initiatives through both untied and tied funding mechanisms.

"Untied grants empower rural local bodies to address location-specific needs" - Ministry of Panchayati Raj
New Delhi, April 3: The Union government has disbursed over Rs. 1,440 crore as grants to boost rural development across five states-- Arunachal Pradesh, Gujarat, Madhya Pradesh, Nagaland, and Punjab -- during the financial year 2024–25, according to a statement issued by the Ministry of Panchayati Raj on Thursday.

Key Points

1

Union allocates substantial grants to five states for rural development

2

Madhya Pradesh receives highest share of Rs 651 crore

3

Funds target local governance and infrastructure improvements

4

Grants support 22,995 gram panchayats across states

These grants, allocated in two installments per financial year, are released by the Ministry of Finance based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti.

Madhya Pradesh was allocated Rs 651.7794 crore as the first instalment (untied grants) for FY 2024–25. These funds were meant for 52 eligible district panchayats, 309 eligible block panchayats, and 22,995 eligible gram panchayats.

Gujarat was allocated Rs 508.6011 crore as the first instalment (untied grants) for FY 2024–25 for 27 eligible district panchayats, 242 eligible block panchayats, and 14,469 eligible gram panchayats.

Punjab was allocated Rs.225.975 crore as the 2nd installment (untied grants) for FY 2024–25 for 22 eligible zila parishads, 149 eligible block panchayats, and 13,152 eligible gram panchayats.

Arunachal Pradesh was allocated Rs 35.40 crore as the first instalment (untied grants) for FY 2022–23 for all the eligible rural local bodies in the state, while Nagaland was allocated Rs 19.20 crore as the first instalment (untied grants) for FY 2022–23, designated for all eligible rural local bodies.

These grants were disbursed under the Fifteenth Finance Commission recommendations.

Untied grants empower rural local bodies to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied grants, on the other hand, must be utilised for sanitation and maintenance of ODF (Open Defecation Free) status, including household waste management, human excreta, and fecal sludge treatment.

They are also allocated for drinking water supply, rainwater harvesting, and water recycling.

The grants aim to strengthen local governance and ensure effective service delivery in rural areas.

Comments:

RK
Rahul K.

Great to see funds being allocated for rural development! Hope the money reaches the grassroots level and makes a real difference in villages. 🙌

PM
Priya M.

I appreciate the transparency in showing exactly how much each state is getting. But I wonder why Arunachal and Nagaland got funds for FY 2022-23 now? Seems like a delay in disbursement.

AS
Amit S.

This is a significant amount! Hope the panchayats use it wisely for infrastructure and sanitation projects. Clean water and proper waste management can transform rural areas.

NK
Neha K.

While the initiative is good, I hope there's proper monitoring. In my village last year, funds were allocated but we never saw any improvements. Accountability is key! 👀

VP
Vikram P.

The breakdown by state is interesting - Madhya Pradesh getting the lion's share makes sense given its size and rural population. Good to see needs-based allocation.

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