Government has released Fifteenth Finance Commission Grants for Rural Local Bodies in Karnataka for the current financial year. The first installment of Untied Grants will amount to around 450 crore rupees. These funds are for around 6 thousand eligible Gram Panchayats of the state. The allocated grants are recommended and released in 2 installments in a financial year.

The Untied Grants will be utilized by Rural Local Bodies for location-specific felt needs, under the Twenty-Nine subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Panchayati Raj Ministry highlighted that this funding helps in making local governing bodies more effective, responsible, and independent, leading to the sustainable and lasting progress in rural areas.