Centre releases 1st instalment of finance commission grant for local bodies in Andhra, Rajasthan

The Union Government has released the first instalment of the 15th Finance Commission grants for 2024-25 to Rural Local Bodies (RLBs) in Andhra Pradesh and Rajasthan, the panchayati raj ministry said in a statement.

Andhra Pradesh has received untied grants amounting to Rs 395.50 crore and tied grants totalling Rs 593.26 crore. These funds are for duly elected nine eligible district panchayats, 615 eligible block panchayats, and 12,853 eligible gram panchayats in the state.

In Rajasthan, untied grants of Rs 507.11 crore and tied grants of Rs 760.67 crore have been released for the duly elected 22 eligible district panchayats, 287 eligible block panchayats and 9,068 eligible gram panchayats.

The untied grants will enable panchayats to address specific local needs across 29 subjects under the 11th Schedule of the Constitution, ranging from agriculture and rural housing to education and sanitation.

These funds, however, cannot be used for salaries or establishment costs.

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

In line with Article 243G of the Constitution, these funds empower panchayats to manage essential services and infrastructure, the ministry said.