Finance commission grants released for Kerala, Meghalaya

New Delhi | The Centre has released the Fifteenth Finance Commission grants of Rs 266.8 crore for rural bodies in Kerala, while grants of Rs 27 crore have been released for Meghalaya.

In an official statement issued here, the Panchayati Raj ministry has said the second instalment of the Fifteenth Finance Commission (XV FC) grants, amounting to Rs 266.8 crore during financial year 2024-25, have been released for the rural local bodies in Kerala.

These funds are for all the 14 eligible district panchayats, 152 block panchayats and 941 gram panchayats in the southern state.

For the rural local bodies in Meghalaya, the first instalment of the untied grants of the financial year 2021–22, amounting to Rs 27 crore, have been released. These funds are for all the three eligible autonomous district councils (Khasi, Garo, Jaintia) of the northeastern state.

The Centre, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends releasing the XV–FC grants to states for rural local bodies, which are then released by the finance ministry. The allocated grants are recommended and released in two instalments in a financial year.

The untied grants provided to the rural local bodies are designated for location-specific needs across the 29 subjects outlined in the 11th Schedule of the Constitution, with the exception of expenses related to salaries and other establishment costs.

The tied grants are dedicated to supporting essential services, including sanitation efforts and maintenance of the open defecation-free (ODF) status, covering household-waste management, human-waste treatment and fecal-sludge management, and ensuring the supply of drinking water, along with rainwater harvesting and water-recycling initiatives.

"The Government of India is actively strengthening rural local self-governance by empowering Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) through the Fifteenth Finance Commission (XV FC) Grants," the ministry has said.

"These funds are instrumental in making PRIs/RLBs more capable, accountable and self-reliant, thereby driving sustainable development across rural regions," it has added.