Grants for Rural Local Bodies of Haryana

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The Union Government has disbursed Fifteenth Finance Commission (XV FC) Grants during the Financial Year 2024–25 for the Rural Local Bodies of Bihar, Haryana, and Sikkim.

Allocation of Grants:
- Haryana:
  - Haryana’s Rural Local Bodies received the second installment of Untied Grants worth Rs 202.47 crore.
  - The funds are designated for 18 eligible District Panchayats, 142 eligible Block Panchayats, and 6,195 eligible Gram Panchayats.
- Bihar:
  - Bihar received the second installment of Untied Grants amounting to Rs 821.80 crore.
  - These funds are allocated to 38 District Panchayats, 530 eligible Block Panchayats, and 8,052 eligible Gram Panchayats that met the mandatory conditions for release.
- Sikkim:
  - Sikkim received the second installment of Untied Grants totaling Rs 6.26 crore.
  - These funds were allocated to 4 eligible District Panchayats and 186 eligible Gram Panchayats, which fulfilled the mandatory conditions for release.
Utilization of Untied and Tied Grants:
- Untied Grants:
  - Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) can use these funds for location-specific development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and administrative costs.
- Tied Grants:
  - These funds are strictly for basic services, including:
    - Sanitation and ODF maintenance, focusing on household waste management, fecal sludge management, and human excreta treatment.
    - Drinking water supply, rainwater harvesting, and water recycling initiatives.

It 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 1^st FC was set up in 1951 and there have been fifteen so far.
The 15^th FC headed by N.K. Singh was constituted by the President of India on 27^th November 2017, against the backdrop of the abolition of the Planning Commission and the introduction of the Goods and Services Tax (GST).
In November 2019, the Union Cabinet approved the 15^th FC to submit its first report for the first fiscal year 2020-21 and to extend its tenure to provide for the presentation of the final report covering Financial Years 2021-22 to 2025-26 by 30th October, 2020.

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