The Union Govt has disbursed the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Tripura and Karnataka for the financial year 2024–25, aiming to strengthen local governance and accelerate rural development.
Tripura has received ₹31.13 crores in Untied Grants (2nd installment), benefiting 589 eligible Gram Panchayats, along with Block Panchayats, District Panchayats, and Traditional Local Bodies. Meanwhile, Karnataka has been allocated ₹404.97 crores in Untied Grants (2nd installment) to support 5,375 eligible Gram Panchayats across the state.
These grants empower Panchayati Raj Institutions (PRIs) to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. The funds, which exclude salaries and establishment costs, are categorized as follows:
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Untied Grants: Flexible funds allocated for various local infrastructure and development projects.
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Tied Grants: Specifically designated for sanitation (including Open Defecation Free status maintenance, waste management, and fecal sludge management) and drinking water initiatives (such as rainwater harvesting and water recycling).
The allocation of these funds marks a significant step toward decentralization, empowering local governments to drive grassroots development. Managed by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, these grants are intended to enhance local governance and support tailored development efforts in rural communities.