SF Prep Notes

XV Finance Commission grants: Uttar Pradesh gets ₹1,598.80 crore, Andhra Pradesh ₹446.49 crore for rural local bodies

The Union Government released XV Finance Commission untied grants of ₹1,598.80 crore to Uttar Pradesh and ₹446.49 crore to Andhra Pradesh for rural local bodies, the Panchayati Raj Ministry said on 24 December 2024.

Summary

The Union Government released Fifteenth Finance Commission grants for rural local bodies for 2024-25, the Ministry of Panchayati Raj said on 24 December 2024. Uttar Pradesh received the second instalment of untied grants of ₹1,598.80 crore for all eligible 75 District Panchayats, 826 Block Panchayats and 57,691 Gram Panchayats. Andhra Pradesh received ₹420.9989 crore as the second instalment plus a withheld ₹25.4898 crore of the first instalment, for 13,097 Gram Panchayats, 650 Block Panchayats and 13 District Panchayats. Untied grants are used for location-specific needs under the 29 subjects of the Eleventh Schedule, except salaries and establishment costs, while tied grants are for sanitation and ODF status and for drinking water supply, rainwater harvesting and water recycling. The grants are recommended by the Panchayati Raj and Jal Shakti ministries and released by the Ministry of Finance in two instalments a year.

Key facts

Announced
24 December 2024, Ministry of Panchayati Raj
Uttar Pradesh
₹1,598.80 crore, 2nd instalment of untied grants 2024-25; 75 DPs, 826 BPs, 57,691 GPs
Andhra Pradesh
₹420.9989 crore (2nd instalment) + ₹25.4898 crore withheld 1st instalment = ₹446.49 crore; 13,097 GPs, 650 BPs, 13 DPs
Untied grants
For the 29 subjects of the Eleventh Schedule, except salaries and establishment costs
Tied grants
Sanitation and ODF status; drinking water, rainwater harvesting, water recycling
Release
Recommended by MoPR and Jal Shakti; released by Finance Ministry in two instalments a year

Practice MCQs 3 questions

Q1

How much was released to Uttar Pradesh as the second instalment of XV Finance Commission untied grants for rural local bodies (2024-25), as announced on 24 December 2024?

Show answer

Correct answer: B — ₹1,598.80 crore

PIB (Panchayati Raj): Uttar Pradesh received ₹1,598.80 crore as the second instalment of untied grants; ₹446.49 crore went to Andhra Pradesh.

Q2 Advanced

XV Finance Commission untied grants to Panchayati Raj Institutions can be used for location-specific needs under the 29 subjects listed in which Schedule of the Constitution?

Show answer

Correct answer: C — Eleventh Schedule

PIB (Panchayati Raj): untied grants are used for location-specific felt needs under the 29 subjects enshrined in the Eleventh Schedule, except salaries and establishment costs.

Q3 Advanced

Consider the following statements about XV Finance Commission grants to rural local bodies, as explained by the Ministry of Panchayati Raj in December 2024: 1. Tied grants can be used for sanitation and maintenance of ODF status. 2. Tied grants can be used for drinking water supply, rainwater harvesting and water recycling. 3. Untied grants can be used to pay salaries of panchayat staff. Which of the statements given above are correct?

Show answer

Correct answer: D — 1 and 2 only

PIB (Panchayati Raj): tied grants are for sanitation/ODF status and for drinking water, rainwater harvesting and water recycling; untied grants exclude salaries and other establishment costs, so statement 3 is wrong.

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