The central government has transferred more than ₹444 crore to rural local bodies across Odisha as part of the allocations recommended by the Fifteenth Finance Commission for the current financial year.

Break-up of Funds Disbursed

A major chunk of ₹342.5964 crore forms the second tranche of untied funds. This amount reaches 20 district panchayats, 296 block-level panchayats, and 6,734 village panchayats that meet the eligibility criteria set by the commission.

In addition, authorities cleared ₹101.7815 crore which had remained pending from the first tranche. This sum now benefits 20 district panchayats, 233 block panchayats, and 649 gram panchayats.

How the Grants Work

Every year, the Ministry of Panchayati Raj along with the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti suggests the distribution of these funds to states. Once approved, the finance ministry processes the release in two equal parts.

Flexibility with Untied Funds

Rural bodies can spend untied grants on any of the 29 areas mentioned in the Eleventh Schedule of the Constitution, provided the money does not go towards staff salaries or administrative overheads. Local priorities such as roads, street lights, or community halls often receive attention under this head.

Mandatory Use of Tied Grants

On the other hand, tied grants carry specific directions. Officials must direct these resources towards sanitation facilities, solid and liquid waste management, sustaining open defecation-free status, and ensuring reliable drinking water supply. Initiatives for rainwater harvesting and water recycling also fall within the permissible uses.

Such targeted funding aims to strengthen basic amenities at the grassroots while giving panchayats room to address unique regional requirements. The latest transfer underscores continued central support for decentralised governance in Odisha.