centre-releases-219-cr-finance-commission-grants-for-rural-assam

Fresh fiscal support has reached Assam’s rural tier with the Centre releasing Rs 219.24 crore in Finance Commission grants, a move intended to strengthen local governance and accelerate development activities across the state’s panchayati raj network.

The Ministry of Panchayati Raj said the amount constitutes the second instalment of untied grants for the 2024-25 financial year under the Fifteenth Finance Commission (XV FC). The funds will be distributed among all eligible rural local bodies, covering 27 district panchayats, 182 block panchayats and 2,192 gram panchayats.

The ministry also confirmed the release of Rs 4,698 crore from the withheld component of the first instalment of the untied grant for 2024–25. These funds have been directed to 26 additional block panchayats that have met eligibility conditions.

According to the ministry, the grants are meant to enhance grassroots administration, enabling local bodies to respond to region-specific needs and undertake small-scale development works under the 29 subjects listed in the Eleventh Schedule of the Constitution. The guidelines stipulate that untied grants cannot be used to pay salaries or cover establishment expenses.

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The Finance Commission grants are recommended jointly by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), after which the Ministry of Finance releases them to the states in two instalments each financial year.

Tied grants under the XV FC are specifically earmarked for water and sanitation services. These include maintaining Open Defecation Free status, managing household waste, treating faecal sludge, improving drinking water supply, and supporting rainwater harvesting and water-recycling systems in rural areas.

Officials maintain that both tied and untied components are vital to enabling panchayati raj institutions and rural local bodies to plan and execute
development projects without excessive procedural delays.