15th Finance Commission: Centre disburses ₹2,045 crore to UP, Andhra Pradesh for rural development

The Union government has disbursed the second instalment of the fifteenth Finance Commission (XV FC) untied grants for the financial year 2024–25 to Rural Local Bodies (RLBs) in Uttar Pradesh and Andhra Pradesh, the ministry of panchayati raj said on Tuesday.

Uttar Pradesh has received ₹1,598.80 crore, benefiting all 75 eligible district panchayats, 826 eligible block panchayats, and 57,691 eligible gram panchayats.

Andhra Pradesh, on the other hand, has been allocated ₹420.99 crore as the second instalment of untied grants, along with ₹25.48 crore from the withheld first installment, for its 13 district panchayats, 650 block panchayats, and 13,097 gram panchayats.

The grants, released by the ministry of finance on recommendations from the Mministry of panchayati raj and the ministry of jal shakti, are part of a two-installment annual allocation designed to empower Rural Local Bodies under 29 subjects of the Eleventh Schedule of the Constitution.

While untied grants provide flexibility to address local requirements except for salaries and other establishment costs, tied grants focus on basic services, including sanitation and maintenance of ODF status, waste management, and drinking water supply, alongside rainwater harvesting and water recycling initiatives.

"In a landmark move to empower India’s grassroots democracy, the Government of India is channeling Fifteenth Finance Commission Grants directly to Panchayati Raj Institutions (PRIs)/ Rural Local Bodies (RLBs), transforming the landscape of rural local governance," the release said.

"This strategic financial empowerment is revolutionizing local administration, fostering accountability, and nurturing self-reliance at the village level," it added.