Grants for Rural Local Bodies of West Bengal | 17 Mar 2025

Why in News? 

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

 Key Points 

  • Grant Disbursement: 
    • The Union Government disbursed the second installment of Untied Grants amounting to Rs 694.4446 crores. 
    • These funds will support 21 District Panchayats, 326 Block Panchayats, and 3,220 Gram Panchayats. 
  • Utilization of Grants: 
    • Untied Grants: Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) will use these funds for location-specific felt needs, as per the 29 Subjects under the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. 
    • Tied Grants: These funds will be utilized for essential 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. 
  • Role of Government Ministries: 
    • The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of XV FC Grants to States for Rural Local Bodies. 
    • The Ministry of Finance subsequently disburses these funds in two installments per Financial Year. 
  • Impact of the Grants: 
    • Strengthens rural local governance by enhancing financial resources at the grassroots level. 
    • Improves accountability and transparency in fund utilization. 
    • Promotes self-reliance in villages, enabling local bodies to address critical infrastructure and service needs effectively. 

 15th Finance Commission 

  •  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. 

 Eleventh Schedule 

  • The Eleventh Schedule, added by the 73rd Amendment Act in 1992, contains provisions that outline the powers, authority, and responsibilities of Panchayats (rural local governments). 
  • It places as many as 29 functions within the purview of the Panchayati Raj bodies including agricultural extension, land improvement, implementation of land reforms etc.