Srinagar: The Urban and Rural Local Bodies are likely to get continuous grants for development works from the Union Home and Rural Development Ministries for upcoming financial year of 2024-25 uninterruptedly, report said.
These bodies have ceased to exist few months back due to delay in elections because of grant of reservation to Other Backward Classes (OBCs).
Reports quoting official sources said that the Central Government has assured continuous grants to Block Development Councils (BDCs), Panchayats and Urban Local Bodies including Municipal Corporations, Councils and Committees which completed their five years term between October to January.
Elections to the ULBs and Panchayats couldn’t be held due to grant of reservation to the OBCs while the BDCs ceased to exist as their term was co-terminus with the Panchayats.
“In the absence of elected Urban and Rural Local Bodies, the grants to them for the financial year of 2024-25 had become doubtful. However, the Centre is likely to release the grants due to valid reason of delay in the polls as the Government wanted to give reservation to OBCs in Panchayats as well as Municipalities at par with other States and Union Territories,” the reports said.
The continuous flow of grants is aimed at helping the Urban and Rural Local Bodies to continue the ongoing development works and take up new projects wherever required and approved.
There is a provision that if elections to rural bodies are delayed by six months the grants can be released in favour of the Panchayats.
Generally, budget of the Panchayats is approved in the month of March, days ahead of the start of financial year on April 1. However, sometimes, the budget can be approved in the month of April. Due to imposition of Model Code of Conduct by the Election Commission for conduct of Lok Sabha elections, the passage of budget can be further delayed.

KR Desk