Bhubaneswar: The Centre released around Rs 455 crore for Odisha as Fifteenth Finance Commission (XVFC) grants for FY2024–25, Wednesday. “Of the Rs 455 crore, Rs 370.20 crore is towards the second instalment and Rs 84.50 crore the first instalment of Untied Grants for FY2024–25 meant for Rural Local Bodies (RLBs) in Odisha. 6,794 gram panchayats, 314 block panchayats and 30 district panchayats of the state will benefit from the funds,” official sources said.
Apart from this, the Centre also released around Rs 614 crore for Rajasthan. “Out of Rs 614 crore, Rs 560.63 crore is towards the second instalment and Rs 53.4123 crore the first instalment of Untied Grants of the FY2024–25 for RLBs.
The funds would benefit 10,105 gram panchayats, 315 block panchayats and 20 eligible district panchayats of the state,” they said. The Untied Grants will be utilised by the Panchayati Raj Institutions (PRIs) or RLBs for location-specific needs, under the 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,” they added.
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The Union government through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XVFC grants to states for RLBs which are then released by Ministry of Finance. The allocated grants are recommended and released in two instalments in a financial year. The XVFC grants provided to PRIs or RLBs play a crucial role in strengthening grassroots democracy. This financial support is improving rural local governance, enhancing accountability, and promoting self-reliance in villages.
