Rajasthan and Odisha receive over Rs 1,000 crore in rural development grants

New Delhi (The Uttam Hindu): The Central government has released the second installment of untied grants for rural local bodies in Rajasthan and Odisha for the financial year 2024-25, as per the recommendations of the Fifteenth Finance Commission, the Finance Ministry stated on Wednesday. Rajasthan received Rs 560.63 crore in its second installment, supplemented by an additional Rs 53.41 crore that was withheld from the first installment. This funding supports 10,105 Gram Panchayats, 315 Block Panchayats, and 20 District Panchayats in the state. Odisha was granted Rs 370.20 crore as its second installment, along with Rs 84.51 crore previously withheld from the first installment. These funds will benefit 6,794 Gram Panchayats, 314 Block Panchayats, and 30 District Panchayats across the state. The untied grants are designed to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution, excluding expenses related to salaries or administrative costs.

In addition to untied grants, tied grants are earmarked for essential services, such as maintaining open defecation-free (ODF) status, managing household waste, treating fecal sludge, supplying drinking water, rainwater harvesting, and water recycling. The grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti and disbursed by the Ministry of Finance in two installments annually. This financial aid, part of the Fifteenth Finance Commission's recommendations, plays a pivotal role in strengthening grassroots democracy, enhancing governance at the rural level, improving accountability, and fostering self-reliance in villages, the ministry emphasized.