Over Rs 1,085 crore grants released by fifteenth finance commission grants for rural local bodies in Bihar, Haryana and Sikkim. Bihar gets the lion share, while Haryana gets Rs. 210 crores and Sikkim gets six crores.
The Union Government has released Fifteenth Finance Commission grants for the financial year 2024–25, benefiting the rural local bodies of Bihar, Haryana, and Sikkim. These funds, aimed at strengthening Panchayati Raj Institutions (PRIs), will support various developmental activities across these states.
Bihar has received the lions share – a total of Rs 869.73 crore, which includes the second instalment of untied grants amounting to Rs 821.80 crore. It also includes the withheld portion of the first instalment, totalling Rs 47.93 crore.
The grants are to be allocated to all 38 district panchayats, 530 eligible block panchayats, and 8,052 eligible gram panchayats that have met the mandatory conditions for release.
The funds are meant to enable the state’s rural local bodies to address essential community needs and strengthen grassroots governance, ensuring a more efficient implementation of development projects.
However, the huge chunk of grants going to Bihar in an election year will not go unnoticed by opposition parties that earlier alleged that the union budget gave disproportionate attention to the state.
Haryana’s Rural Bodies Get Rs 210 Crore, 6 Crores for Sikkim
Haryana’s rural local bodies will be granted Rs 202.46 crore as the second instalment of untied grants, in addition to Rs 7.59 crore from the withheld portion of the first instalment. These funds will be distributed among 18 district panchayats, 142 block panchayats, and 6,195 gram panchayats.
The financial support aims to empower Haryana’s PRIs to undertake key development initiatives, focusing on infrastructure improvements and enhancing public services in rural areas.
Sikkim has received Rs 6.26 crore as the second instalment of untied grants. These funds are designated for four eligible district panchayats and 186 gram panchayats that have fulfilled the necessary conditions for fund disbursement.
This financial aid is expected to help Sikkim’s rural bodies in implementing localized projects that cater to the specific developmental needs of their communities.
Strengthening Grassroots Governance
The untied grants provided to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) are to be used for location-specific developmental activities under the Twenty-Nine (29) subjects listed in the Eleventh Schedule of the Constitution. However, these funds cannot be utilized for salaries and other establishment costs.
Additionally, tied grants will be specifically allocated for improving essential services, including:
- Sanitation and Maintenance of Open Defecation Free (ODF) Status: This includes the management and treatment of household waste, human excreta, and faecal sludge.
- Water Management: These funds will also support the supply of drinking water, rainwater harvesting, and water recycling initiatives.
The release of grants of the fifteenth finance commission is a significant step towards strengthening grassroots governance by providing much-needed financial resources to rural local bodies. By ensuring better service delivery in key sectors such as sanitation, water management, and infrastructure, these grants can contribute to improving the quality of life for millions of rural residents across Bihar, Haryana, and Sikkim.
As these funds are disbursed, state and local authorities are expected to maximise their impact on rural development. With a continued focus on strengthening PRIs, the Union Government reaffirms its commitment to fostering inclusive growth and sustainable development in India’s rural areas.
