New Delhi, July 9 -- The finance ministry recently issued operational guidelines for implementing the Sixteenth Finance Commission's Rs.4.35 trillion grants to Rural Local Bodies (RLBs) for 2026-31. Mint explains the new framework that sets clear rules for releasing, monitoring and using grants, promoting accountability and better financial management at the local level to improve governance, mobilize own revenue and deliver quality public services.

The model guidelines will apply to 2.62 lakh Panchayati Raj Institutions (PRIs) across the country. By transferring governance from state capitals to local villages, PRIs ensure that rural development, healthcare and infrastructure projects address the specific needs of the local population. ...