New Delhi: The Union Government on Friday released ₹275.12 crore to Jharkhand to bolster its Panchayati Raj Institutions (PRIs) and rural local bodies. This allocation follows the recommendations of the 15th Finance Commission for the 2025–26 financial year.
Funding Distribution
According to the Ministry of Panchayati Raj, this release represents the second instalment of “Untied Grants” for the 2024–25 financial year. The funds will support development across every level of rural administration in the state:
-
24 District Panchayats
-
253 Block Panchayats
-
4,342 Gram Panchayats
Usage Guidelines: Tied vs. Untied Grants
The Ministry has specified how local bodies must allocate these funds to ensure effective rural development.
Untied Grants Panchayats can use these funds for local priority projects based on specific community needs. However, the government prohibits the use of these grants for salaries or any other establishment expenses.
Tied Grants These funds must support essential basic services. Primary focus areas include:
-
Sanitation: Maintenance of Open Defecation Free (ODF) status.
-
Water Management: Drinking water supply, rainwater harvesting, and water recycling.
National Overview
Jharkhand is one of several states receiving significant central support this month. The Union Government recently released over ₹3,324 crore to several major states to enhance rural infrastructure.
Grant Allocations by State:
-
Uttar Pradesh: ₹1,559.40 crore (75 District Panchayats)
-
Bihar: ₹802.40 crore (38 District Panchayats)
-
West Bengal: ₹680.86 crore (21 District Panchayats)
-
Jharkhand: ₹275.12 crore (24 District Panchayats)
Earlier this month, the Centre also distributed ₹137 crore among Goa, Meghalaya, Sikkim, and Uttarakhand to support their respective rural bodies.
