Finance Commission grants boost for Kerala, Meghalaya rural bodies

The Union Government has released the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Kerala, amounting to ₹266.8 crore for the financial year 2024–25. This funding will support 14 District Panchayats, 152 Block Panchayats, and 941 Gram Panchayats in Kerala.

In Meghalaya, the first installment of the XV FC grants for the financial year 2021–22 has been released, totaling ₹27 crore. These funds will support the three Autonomous District Councils (Khasi, Garo, and Jaintia) in the state.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of these grants to the States. The Ministry of Finance then oversees their disbursement. The XV FC grants are typically released in two instalments within a financial year.

The funds are allocated for specific local needs outlined in the Eleventh Schedule of the Constitution. However, they cannot be used for salaries or other administrative costs. Additionally, Tied Grants support vital services such as sanitation, maintaining Open Defecation-Free (ODF) status, and ensuring access to drinking water. These grants also support rainwater harvesting and water recycling initiatives.

The Government of India is committed to strengthening rural self-governance by empowering Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) through these grants. This initiative aims to enhance the capabilities, accountability, and self-reliance of PRIs/RLBs, promoting sustainable rural development.

In line with Prime Minister Narendra Modi’s vision of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’, the government aims to drive inclusive growth and strengthen participatory democracy. This effort positions PRIs/RLBs as key pillars of the nation’s development, supporting the broader goal of a developed India, or Viksit Bharat.