Overview of XV Finance Commission Grants
The Union Government has allocated substantial funds under the XV Finance Commission (XV FC) for the Financial Year 2025–26 to empower Rural Local Bodies (RLBs) in Gujarat and Haryana. These grants aim to enhance local governance and support essential services in rural areas.
Grants Allocation for Gujarat
In Gujarat, the government has released the second installment of Untied Grants for the Financial Year 2024–25, totaling ₹522.20 crores. This funding supports all 38 District Panchayats, 247 eligible Block Panchayats, and 14,547 eligible Gram Panchayats. Additionally, ₹13.5989 crores from the withheld portion of the first installment of Untied Grants for FY 2024–25 has been disbursed to 6 District Panchayats, 5 Block Panchayats, and 78 Gram Panchayats that have recently become eligible.
Grants Allocation for Haryana
For Haryana, the Union Government has released the first installment of Untied Grants for FY 2025–26, amounting to ₹195.129 crores. This funding benefits 18 District Panchayats, 134 eligible Block Panchayats, and 6,164 Gram Panchayats across the state.
Role of Ministries in Grant Disbursement
The Ministry of Panchayati Raj, in collaboration with the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of XV FC Grants to states for Panchayati Raj Institutions and Rural Local Bodies. The Ministry of Finance then facilitates the disbursement of these grants, which are provided in two installments each financial year.
Utilization of Grants
The Untied Grants are designed to address location-specific needs as outlined in the Twenty-Nine Subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. Meanwhile, Tied Grants are allocated for critical services, including:
- Sanitation and maintenance of Open Defecation Free (ODF) status, including household waste management, human excreta, and fecal sludge management.
- Provision of drinking water, rainwater harvesting, and water recycling initiatives.
Impact on Rural Development
These grants empower Rural Local Bodies to address pressing community needs, improve sanitation, and ensure access to clean drinking water. By strengthening local governance, the XV FC Grants contribute to sustainable rural development in Gujarat and Haryana.
Keyword: XV Finance Commission
Meta Description: The Union Government has released over ₹730 crores in XV Finance Commission Grants to strengthen Rural Local Bodies in Gujarat and Haryana for 2024–26, supporting local governance and essential services like sanitation and water supply.