SF Prep Notes

Centre releases over ₹436 crore of XV Finance Commission grants for Karnataka and Tripura panchayats

The Union Government released the second instalment of XV Finance Commission untied grants for 2024-25 to rural local bodies in Karnataka (₹404.97 crore) and Tripura (₹31.13 crore), the Ministry of Panchayati Raj said on 27 March 2025.

Summary

The Union Government released the second instalment of Fifteenth Finance Commission (XV FC) untied grants for 2024-25 to rural local bodies in Karnataka and Tripura, the Ministry of Panchayati Raj said on 27 March 2025. Karnataka received ₹404.9678 crore for 5,375 eligible Gram Panchayats, and Tripura ₹31.1259 crore for 589 eligible Gram Panchayats along with Block and District Panchayats and Traditional Local Bodies. Untied grants can be used for location-specific needs under the 29 subjects in the Eleventh Schedule, except salaries and establishment costs; tied grants are for sanitation and drinking water.

Key facts

Announced
27 March 2025
Instalment
Second, 2024-25, untied grants
Karnataka
₹404.9678 crore, 5,375 Gram Panchayats
Tripura
₹31.1259 crore, 589 Gram Panchayats
Untied grants
Any of 29 Eleventh Schedule subjects, except salaries and establishment costs
Tied grants
Sanitation and drinking water

Practice MCQs 2 questions

Q1

Which two States received XV Finance Commission untied grants for rural local bodies, as announced on 27 March 2025?

Show answer

Correct answer: B — Karnataka and Tripura

Karnataka received ₹404.97 crore and Tripura ₹31.13 crore as the second instalment of untied grants for 2024-25.

Q2 Advanced

Consider the following statements about XV Finance Commission untied grants to rural local bodies: 1. They can be used for salaries and establishment costs of panchayats. 2. In Tripura, Traditional Local Bodies were among the recipients of the 2024-25 second instalment. Which of the above is/are correct?

Show answer

Correct answer: B — 2 only

Untied grants cannot be used for salaries and establishment costs. In Tripura, the grant covered Gram, Block and District Panchayats and Traditional Local Bodies.

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