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.