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Centre releases over Rs 436 crore to Karnataka and Tripura for rural development

The Union Government has released over Rs. 436 crores as the second installment of the Fifteenth Finance Commission (XV FC) Grants for rural local bodies in Karnataka and Tripura for the financial year 2024–25, as stated by the Ministry on Thursday. This release aims to strengthen local governance and promote rural development in these states.

In Tripura, Rs. 31.13 crores have been allocated as Untied Grants to benefit 589 eligible Gram Panchayats, along with all Block Panchayats, District Panchayats, and Traditional Local Bodies. Meanwhile, Karnataka has received Rs. 404.97 crores in Untied Grants for 5375 eligible Gram Panchayats, supporting rural local bodies across the state.

These grants empower Panchayati Raj Institutions (PRIs) to address location-specific needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution. The funds are dedicated to development initiatives, excluding salaries and establishment costs.

The XV Finance Commission Grants are divided into two categories: Untied Grants, which support diverse local development projects and the infrastructure, and Tied Grants, which focus on critical areas like sanitation and drinking water. This release is part of the government’s broader efforts to decentralize resources and empower local governments to meet the unique needs of rural communities.

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Last Updated: 31st Mar 2025