Centre Releases Rs 213.9 Crore for Rural Development in Assam

The Union Government has released Rs 213.9 crore to Assam under the Fifteenth Finance Commission (XV-FC) to strengthen rural local bodies across the state. The amount, released on January 20, is the first instalment for the financial year 2025–26 and aims to boost grassroots governance and basic civic services in rural areas.

The funds will benefit 2,192 Gram Panchayats, 182 Block Panchayats and 27 Zilla Parishads across Assam, providing much-needed financial support for development works tailored to local needs.

The grants have been released following recommendations by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, and were finally disbursed by the Ministry of Finance. Under the XV Finance Commission framework, grants to Panchayati Raj Institutions are released in two instalments every financial year.

A major portion of the released amount falls under United Grants, which give rural local bodies the flexibility to spend funds based on local priorities. These funds can be used for a wide range of development activities linked to the 29 subjects listed under the Eleventh Schedule of the Constitution, such as rural roads, community assets, local infrastructure and social welfare initiatives. However, the money cannot be used for salaries or administrative expenses.

In addition, Tied Grants under the Finance Commission are earmarked for essential services like sanitation and drinking water. This includes maintaining open defecation-free (ODF) status, managing household waste, treatment of human waste and faecal sludge, as well as improving drinking water supply, rainwater harvesting and water recycling systems in villages.

Officials said the timely release of funds will help rural bodies accelerate development work, improve service delivery and strengthen local governance. The infusion of central funds is also expected to support Assam’s ongoing efforts to improve sanitation standards and ensure access to safe drinking water in rural areas.

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