Centre releases Rs 436 crore for panchayats in Karnataka, Tripura
New Delhi: The Centre has released Rs 436 crore as the second instalment of the Fifteenth Finance Commission grants for rural local bodies in Karnataka and Tripura for the financial year 2024–25, to strengthen local governance and drive rural transformation, the Ministry of Panchayati Raj announced on Thursday.
The Centre has allocated Rs 31.13 crore to Tripura for 589 eligible gram panchayats, along with all block panchayats, district panchayats, and traditional local bodies. A sum of Rs 404.97 crore has been released to Karnataka for 5,375 eligible gram panchayats, supporting rural local bodies across the state, according to the ministry.
These grants empower panchayati raj institutions, enabling them to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution. These funds are utilised for development initiatives, excluding salaries and establishment costs. The grants are divided into two categories of untied and tied grants.
Untied grants can be used for diverse community-specific needs and are aimed at enhancing local infrastructure and development projects. Tied grants are allocated specifically for critical areas of sanitation (including the maintenance of Open Defecation Free status, waste management, and faecal sludge management) and drinking water (including rainwater harvesting and water recycling).
The release of these funds is a significant move toward decentralising resources and empowering local governments. Managed by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, the 15th Finance Commission Grants are designed to drive grassroots development, enhance local governance, and support initiatives tailored to the unique needs of rural communities.
The Fifteenth Finance Commission grants aim at strengthening rural local self-governance by empowering rural local bodies. These funds help them to become more capable, accountable, and self-reliant, driving sustainable development in rural areas. Aligned with Prime Minister Narendra Modi’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’, this initiative supports inclusive growth and participatory democracy, vital for the development of the country, the official statement observed.