The Central government has released the second installment of untied grants for rural local bodies in Rajasthan and Odisha for 2024-25 in accordance with the recommendations of the Fifteenth Finance Commission, the Finance Ministry announced on Wednesday.

A sum of Rs 560.63 crore has been released as the second installment of the untied grant for Rajasthan along with the withheld amount of first installment of Untied Grants for the Financial Year 2024-25 amounting to Rs 53.41 crore for 10,105 eligible Gram Panchayats, 315 block panchayats and 20 eligible district panchayats in the state, according to the official statement.

An amount of Rs 370.20 crore has also been released as the second installment of the untied grant Odisha along with the withheld amount of the first installment for the Financial Year 2024-25 amounting to Rs.84. 5086 crore for 6,794 eligible Gram Panchayats, 314 Block Panchayats and 30 District Panchayats of the state.

The untied grants will be utilised by the Panchayati Raj Institutions for location-specific felt 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 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.

They can also be used for the supply of drinking water, rainwater harvesting and water recycling.

The Central government through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of Fifteenth Finance Commission Grants to States for Rural Local Bodies which are then released by the Ministry of Finance.

The allocated Grants are recommended and released in two installments in a Financial Year.

The Fifteenth Finance Commission Grants provided to Panchayati Raj Institutions play a crucial role in strengthening grassroots democracy.

This financial support is improving rural local governance, enhancing accountability, and promoting self-reliance in villages, the statement added.