Why new rural local body grant guidelines are important for Gram Panchayats? | Today’s news

What is the difference between tied and untied core grants?

The Center has distributed core grants equally under the Rural Local Bodies Grant Framework, giving Panchayats both earmarked funding for core services and flexibility to address local priorities. Half of the Core Grant allocation will be released as tied grants that must be spent on sanitation, solid waste management and water management. The intention is to improve the provision of basic civic services and strengthen rural infrastructure. The remaining 50% will be provided as untied grants to enable panchayats to allocate resources based on local development needs. These funds can be used for any of the 29 subjects listed in the eleventh schedule of the constitution such as agriculture, rural housing, roads, education, health and social care. The dual funding structure is designed to ensure that villages receive dedicated resources for critical public services while retaining the flexibility to address region-specific development priorities through locally driven planning and decision-making.