Centre disburses over Rs 2,400 crore as grants to rural local bodies of Bihar, Himachal & UP
The Union Government has released over Rs 2,400 crore as the first instalment of untied grants under the 15th Finance Commission for the financial year 2025–26 to rural local bodies in Bihar, Himachal Pradesh and Uttar Pradesh, according to a statement issued by the Ministry of Panchayati Raj on Thursday.
IANS
Sep 25, 2025 11:12
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New Delhi, Sep 25 (IANS) The Union Government has released over Rs 2,400 crore as the first instalment of untied grants under the 15th Finance Commission for the financial year 2025–26 to rural local bodies in Bihar, Himachal Pradesh and Uttar Pradesh, according to a statement issued by the Ministry of Panchayati Raj on Thursday.
Bihar has received Rs 801.009 crores for 38 eligible District Panchayats, 530 Block Panchayats, and 8,046 Gram Panchayats in the state, while Himachal Pradesh has been allocated Rs 67.955 crore covering all 12 District Panchayats, 80 eligible Block Panchayats, and 3,576 Gram Panchayats. Uttar Pradesh received Rs 1,548.3836 crore for 73 eligible District Panchayats, 813 Block Panchayats, and 57,633 Gram Panchayats, the statement said.
The Centre, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of Finance Commission grants to states for rural local bodies/Panchayati Raj Institutions, which are then released by the Ministry of Finance. The allocated grants are recommended and released in 2 instalments in a financial year.
The untied grants will be utilised by Rural Local Bodies/ 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 (Open Defecation Free) status, and this should include management and treatment of household waste, human excreta, and faecal sludge management in particular. They are also allocated for the supply of drinking water, rainwater harvesting and water recycling, the statement added.
The grants aim to strengthen local governance and ensure effective service delivery in rural areas.
The Ministry of Panchayati Raj has launched initiatives such as SabhaSaar - an AI-powered tool for recording and summarising Gram Sabha proceedings, SVAMITVA for digital land mapping and property rights, eGramSwaraj for integrated online planning, accounting and monitoring. Besides, Gram Manchitra has been rolled out for geo-spatial planning - are transforming the way panchayats function. These platforms not only improve transparency and efficiency but also empower citizens to participate more actively in local governance. As of August 2025, 2.63 crore property cards have been prepared in 1.73 lakh villages. As of July 2025, drone surveys have been completed in 3.23 lakh villages, the statement explained.
As many as 2.54 lakh Gram Panchayats have uploaded their Gram Panchayat Development Plan (GPDP) on the eGramSwaraj portal, while 2.41 lakh Gram Panchayats have completed online transactions for 15th Finance Commission grants.
--IANS
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