New Delhi, March 25 (IANS) The Centre on Friday announced the release of over Rs 1,142 crore to strengthen rural local bodies in Madhya Pradesh, Jharkhand, Punjab and Mizoram during FY 2025–26 as part of the 15th Finance Commission’s untied grants.

For Madhya Pradesh, a sum of Rs 631.91 crore has been released as the second instalment of Untied Grants of FY 2025-26 for 51 eligible district panchayats, 300 block panchayats and 22,933 gram panchayats (GPs). Further, Rs 1.26 crore of withheld portion of the first instalment of untied grants for FY 2025-26 has also been released to some panchayats.

Similarly, for Jharkhand, the first instalment of untied grants of the financial year 2025-26 amounting to Rs 269.03 crore have been released. These funds are for eligible 23 district panchayats, 264 block panchayats and 4,344 gram panchayats. Further, Rs. 3.65 crore of withheld portion of first and and second instalment of untied grants for FY 2024-25 have also been released to 13 panchayats.

In the case of Punjab, the second instalment of untied grants for FY 2025–26 amounting to Rs. 222 crore has been allocated for 13,262 eligible gram panchayats, 150 eligible block panchayats and all 22 district panchayats. While for Mizoram, the second instalment of untied grants amounting to Rs 14.80 crore have been released. These funds are for all 816 eligible Village Councils of the State.

The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of 15th Finance Commission grants to states for panchayati raj institutions, which are then released by the Ministry of Finance. The allocated Grants are recommended and released in two instalments in a financial year.

Untied Grants may be utilised by panchayati raj institutions and rural local bodies to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs.

Tied grants can be used for the basic services of sanitation and maintenance of ODF (open defecation-free) status, and this should include management and treatment of household waste, and human excreta and faecal sludge management in particular. These grants can also be used for the supply of drinking water, rainwater harvesting and water recycling.

--IANS

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