The Untied Grants will be utilised by Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) to address location-specific developmental needs under the 29 subjects outlined in the Eleventh Schedule of the Constitution, excluding salaries and administrative expenses. Additionally, Tied Grants have been designated for essential services, including sanitation and the maintenance of Open Defecation-Free (ODF) status, which encompasses waste management, treatment of household waste, and fecal sludge management. These grants also support initiatives for drinking water supply, rainwater harvesting, and water recycling.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) oversee the recommendation of these grants, which are released by the Ministry of Finance in two installments each financial year. The funding aims to strengthen rural local governance, enhance accountability, and promote self-sufficiency in villages, contributing to the overall development and sustainability of rural areas in India.

News source: PIB