Centre releases Rs 12.4 crore to state’s panchayats

Panaji: Centre on Friday disbursed Rs 12.4 crore as part of a Rs 592 crore package released to Goa and Maharashtra to strengthen village panchayats and the two zilla panchayat bodies in the state.

The funds, which are not tied to any scheme or sector, can be used by the panchayats to boost local development, sanitation, waste management etc.

“The untied grants will be utilised by panchayati raj institutions and the rural local bodies for location-specific needs, except for salaries and other establishment costs,” said an official.

The Union finance ministry sanctioned and released the 15th Finance Commission grants, with the Rs 12.4 crore being the first instalment received by Goa as part of the grants for 2024–25.

The funds will be distributed to the two eligible zillapanchayats (DPs) and all 191 eligible village panchayats. The Centre, through the ministry of panchayati raj and ministry of drinking water and sanitation, recommends release of grants to states for rural local bodies, which is then released by the finance ministry.

The grants are recommended and then released in two installments in a financial year.

Unlike the untied grants, tied grants can be used only for sanitation purposes, household waste, sewerage, supply of drinking water, rainwater harvesting, and water recycling.