Union Government Grants
Grants to Tamil Nadu Rural Bodies: The Union government has released ₹127.586 crore to Tamil Nadu as the first instalment for rural local bodies for the financial year 2025–26. This allocation is part of the Fifteenth Finance Commission Grants recommended for Panchayati Raj Institutions. The grants aim to strengthen local governance and address grassroots developmental needs.
Static GK fact: Tamil Nadu has a three-tier Panchayati Raj system consisting of gram panchayats, block panchayats, and district panchayats.
Coverage of Grants
The released grants cover 2,901 eligible gram panchayats, 74 block panchayats, and nine district panchayats in the state. These bodies are responsible for planning and implementing local development projects under the guidance of the state government.
Static GK fact: The Eleventh Schedule of the Constitution lists 29 subjects on which Panchayati Raj Institutions can function, including agriculture, health, sanitation, and rural development.
Recommendation and Release Process
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the grants to the Ministry of Finance, which then releases the funds in two instalments during the financial year. The process ensures accountability and timely transfer of resources to local bodies.
Static GK Tip: The Fifteenth Finance Commission was constituted in 2017 to recommend the distribution of central funds to states for 2021–26, focusing on equitable development.
Purpose and Utilization
These grants are untied, allowing local bodies to address location-specific felt needs. Funds can be used for various developmental activities under the subjects of the Eleventh Schedule, but they cannot be utilized for salaries or other establishment-related costs. This ensures that the grants are strictly for infrastructure and welfare initiatives.
Static GK fact: Untied grants provide flexibility for local self-governments, enabling them to prioritize projects based on immediate local needs.
Financial Planning at Local Level
Local bodies can plan projects in sectors such as rural sanitation, water supply, primary education, and road development. The grants also support innovative schemes tailored to local requirements, fostering participatory governance.
Static GK Tip: Tamil Nadu’s Panchayati Raj system has historically been one of the most robust in India, with strong community participation in rural development planning.
Static Usthadian Current Affairs Table
Grants to Tamil Nadu Rural Bodies:
| Topic | Detail |
| First Instalment | ₹127.586 crore released for FY 2025–26 |
| Covered Bodies | 2,901 gram panchayats, 74 block panchayats, 9 district panchayats |
| Recommending Ministries | Ministry of Panchayati Raj, Ministry of Jal Shakti |
| Release Authority | Ministry of Finance in two instalments |
| Purpose | Location-specific development under 29 Eleventh Schedule subjects |
| Restrictions | Cannot be used for salaries or establishment costs |
| Key Framework | Fifteenth Finance Commission Grants |
| Static GK Note | Tamil Nadu has a three-tier Panchayati Raj system |
