The Union Government has disbursed Fifteenth Finance Commission (XV FC) Grants for the financial year 2024–25, releasing the second installment of Untied Grants amounting to ₹266.80 crore for Rural Local Bodies in Kerala. These funds are allocated to all eligible Rural Local Bodies, including 14 District Panchayats, 152 Block Panchayats, and 941 Gram Panchayats across the state. Additionally, the first installment of Untied Grants for the financial year 2021–22, amounting to ₹27.00 crore, has been released for Rural Local Bodies in Meghalaya, benefiting the three eligible Autonomous District Councils—Khasi, Garo, and Jaintia.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV FC Grants, which are issued by the Ministry of Finance in two installments annually.
Objectives of the Grants:
- Untied Grants: These are earmarked for location-specific requirements across the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.
- Tied Grants: These focus on critical services such as:
- Sanitation: Sustaining Open Defecation-Free (ODF) status, household waste management, human waste treatment, and fecal sludge management.
- Drinking Water: Ensuring clean water supply, rainwater harvesting, and water recycling initiatives.
This initiative aims to empower Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs), making them self-reliant, accountable, and capable of driving sustainable rural development. Aligned with Prime Minister Narendra Modi’s vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas”, these grants promote inclusive growth and participatory democracy. By strengthening PRIs and RLBs as key pillars of India’s development framework, the initiative supports the vision of a developed India (Viksit Bharat).