Finance Commission Grants for Maharashtra | 19 Mar 2025

Why in News?

The Union Government has released the Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies in Maharashtra during the Financial Year 2024–25.

Grant Allocation:
- Second installment of Untied Grants amounting to Rs 611.6913 crores.
- Withheld portion of the first installment of Untied Grants amounting to Rs 8.4282 crores.
- These funds have been allocated to various District, Block, and Gram Panchayats in the state.
Utilization of Untied and Tied Grants:
- Untied Grants:
  - Panchayati Raj Institutions (PRIs) can utilize these funds for location-specific felt needs under the 29 Subjects listed in the Eleventh Schedule of the Constitution.
  - The funds cannot be used for salaries or establishment costs.
- Tied Grants:
  - These grants support basic services, including:
    - Sanitation and maintenance of ODF status, covering household waste management, human excreta treatment, and fecal sludge management.
    - Drinking water supply, rainwater harvesting, and water recycling to ensure water security in rural areas.
Grant Disbursement Process:
- The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of XV FC Grants.
- The Ministry of Finance then disburses these grants to states in two installments per Financial Year.

The Finance Commission (FC) is a constitutional body that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements.
Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.
The 15th Finance Commission was constituted by the President of India in November 2017, under the chairmanship of NK Singh. Its recommendations will cover a period of five years from the year 2021-22 to 2025-26.