XV Finance Commission Grants for Rural Local Bodies in West Bengal Released

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV Finance Commission Grants to states.

The Union Government has disbursed the Fifteenth Finance Commission (XV FC) Grants for the financial year 2024–25 to Rural Local Bodies (RLBs) in West Bengal. This includes the second installment of Untied Grants amounting to Rs. 694.4446 crores and the previously withheld portion of the first installment of Untied Grants, totaling Rs. 4.9323 crores. These funds are allocated for 21 eligible District Panchayats, 326 eligible Block Panchayats, and 3,220 eligible Gram Panchayats across the state.

Utilization of Untied and Tied Grants

The Untied Grants provide financial flexibility to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) and are meant for location-specific developmental needs, as defined under the Twenty-Nine (29) Subjects in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or other establishment costs.

The Tied Grants are specifically designated for two critical areas of rural development:

1. Sanitation and Maintenance of Open Defecation-Free (ODF) Status
   • Management and treatment of household waste.
   • Human excreta and fecal sludge management.
2. Water Supply and Conservation
   • Provision of drinking water.
   • Rainwater harvesting.
   • Water recycling initiatives.

Mechanism of Grant Disbursement

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV Finance Commission Grants to states. Subsequently, the Ministry of Finance disburses these funds in two instalments per financial year.

Impact on Rural Governance

This financial assistance aims to:

• Strengthen rural local governance structures.
• Enhance transparency and accountability in the functioning of Panchayati Raj Institutions.
• Promote self-reliance and sustainable development in villages across India.

The timely release of these grants is expected to significantly improve rural infrastructure, sanitation, and water management systems, contributing to overall socio-economic growth in West Bengal's rural areas.