Union Government Releases Over ₹730 Crore to Strengthen Rural Local Bodies in Gujarat and Haryana
In a major push to empower grassroots governance, the Union Government has released over ₹730 crore to Rural Local Bodies (RLBs) in Gujarat and Haryana under the 15th Finance Commission (XV-FC) grants for FY 2025–26. The move aims to enhance financial autonomy, service delivery, and local development in rural areas.
The grants are classified into Untied Grants, which allow Panchayats to address local priorities across 29 subjects in the Eleventh Schedule of the Constitution, and Tied Grants, earmarked for essential services such as drinking water, sanitation, waste management, and rainwater harvesting.
Fund Allocation:
- Gujarat: ₹522.20 crore as the second installment of untied grants for FY 2024–25, covering 38 District Panchayats, 247 Block Panchayats, and 14,547 Gram Panchayats; an additional ₹13.59 crore released to newly eligible bodies.
- Haryana: ₹195.13 crore as the first installment of untied grants for FY 2025–26, supporting 18 District Panchayats, 134 Block Panchayats, and 6,164 Gram Panchayats.
These grants enable Panchayats to strengthen infrastructure, improve public services, and make region-specific decisions, while tied funds ensure critical services impacting public health and rural quality of life are prioritized.
