Union Government Disburses Rs 4.36 Bn to Karnataka and Tripura

28 Mar 2025 CW Team

The Union Government has released the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Karnataka and Tripura for FY 2024–25, aiming to strengthen local governance and accelerate rural development.

Breakdown of Fund Allocation Tripura: Rs 311.2 billion(Untied Grants - 2nd installment) benefiting 589 Gram Panchayats, along with Block Panchayats, District Panchayats, and Traditional Local Bodies. Karnataka: Rs 404.96 billion (Untied Grants - 2nd installment) supporting 5,375 eligible Gram Panchayats across the state.

Empowering Panchayati Raj Institutions (PRIs) These grants empower Panchayati Raj Institutions (PRIs) to cater to location-specific developmental needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. The funds are exclusively meant for development projects and cannot be used for salaries or establishment costs.

Types of Grants Allocated Untied Grants: Flexible funding for community-specific development initiatives, local infrastructure enhancement, and welfare projects.

Tied Grants:

Dedicated funds for sanitation, including waste management, fecal sludge management, and maintaining Open Defecation Free (ODF) status. Drinking water projects, rainwater harvesting, and water recycling initiatives.

A Step Towards Decentralised Development Administered by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, the XV Finance Commission Grants play a crucial role in decentralizing resources, strengthening local governance, and enabling grassroots development tailored to the unique needs of rural communities.

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