Maharashtra's Rural Bodies Get Rs 6.20 Bn from XV Finance Commission

19 Mar 2025 CW Team

The Union Government has released the Fifteenth Finance Commission (XV FC) Grants during Financial Year 2024–25, for the Rural Local Bodies in Maharashtra. Amount released entails 2nd installment of Untied Grants amounting to Rs 6.11 billion and withheld portion of 1st installment of Untied Grants amounting to Rs 80.42 million. These funds are for the 4 eligible District Panchayats, 40 eligible Block Panchayats and 21551 eligible Gram Panchayats of the state.

The Untied Grants will be utilized by Panchayati Raj Institutions (PRIs)/ Rural Local Bodies (RLBs) for location-specific felt needs, under the Twenty-Nine (29) Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling. Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of Fifteenth Finance Commission (XV FC) Grants to States for Rural Local Bodies which is then released by the Ministry of Finance. The allocated Grants are recommended and released in 2 installments in a Financial Year. The devolution of Central Finance Commission (CFC) Grants empowers Panchayati Raj Institutions, enabling them to address their local development needs effectively. Aligning with the vision of Prime Minister Narendra Modi of Viksit Panchayat Se Viksit Bharat – these grants strengthen grassroot democracy and accelerates rural transformation.

News source: PIB

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