Centre releases Rs 436 crore for panchayats in Karnataka, Tripura

New Delhi

The Centre has released Rs 436 crore as the second instalment of the Fifteenth Finance Commission grants for rural local bodies in Karnataka and Tripura for the financial year 2024-25. This move is aimed at strengthening local governance and driving rural transformation, as announced by the Ministry of Panchayati Raj on Thursday.

A total of Rs 31.13 crore has been allocated to Tripura, benefiting 589 eligible gram panchayats along with all block panchayats, district panchayats, and traditional local bodies. Karnataka has received Rs 404.97 crore for 5,375 eligible gram panchayats, supporting rural local bodies across the state.

These grants are designed to empower panchayati raj institutions, enabling them to address specific needs in their areas under the 29 subjects outlined in the Eleventh Schedule of the Constitution. The funds can be used for development projects, excluding salaries and administrative costs. The grants are divided into untied and tied categories.

Untied grants can be used for community-specific infrastructure and development needs, while tied grants are allocated for crucial areas like sanitation (including maintaining Open Defecation Free status) and drinking water (including rainwater harvesting and water recycling).

This fund release is part of the government's efforts to decentralize resources, empower local governments, and promote sustainable development in rural areas. Aligned with Prime Minister Narendra Modi's vision of inclusive growth, the grants support grassroots development and enhance local governance.