The Union Government has released over ₹2,461 crore under the Fifteenth Finance Commission (XV-FC) grants to strengthen Rural Local Bodies across eight states, according to a press release issued by the Ministry of Panchayati Raj on Tuesday, 31 March.
The funds have been disbursed to Chhattisgarh, Gujarat, Madhya Pradesh, Punjab, Sikkim, Himachal Pradesh, Odisha and Tripura, covering both tied grants for the financial year 2025-26 and withheld portions of previous allocations.
According to the release, tied grants were provided to Punjab (₹332.46 crore), Madhya Pradesh (₹943.27 crore), Chhattisgarh (₹347.89 crore), Gujarat (₹763.83 crore), and Sikkim (₹9.90 crore) as part of the second instalment for FY 2025-26.
Additionally, withheld portions of earlier grants were released to multiple states. Madhya Pradesh received ₹1.89 crore, Chhattisgarh ₹12.04 crore, Gujarat ₹7.338 lakh, and Sikkim ₹24.75 lakh as withheld portions of tied grants.
Tripura received ₹41.11 lakh in tied grants and ₹27.40 lakh in untied grants as withheld portions for FY 2024-25.
Himachal Pradesh received ₹13.80 crore and ₹6.44 lakh as withheld untied grants for FY 2023-24, while Odisha received ₹35.09 crore as withheld untied grants covering both first and second instalments for FY 2025-26.
The disbursement is aimed at strengthening grassroots governance by enhancing the financial capacity of Panchayati Raj Institutions across eligible Gram Panchayats, Block Panchayats, and District Panchayats in these states.
The ministry noted that the grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, and are subsequently disbursed by the Ministry of Finance in two instalments annually.
Untied grants are intended to support location-specific development needs under the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.
Tied grants, on the other hand, are earmarked for critical basic services such as sanitation, maintenance of Open Defecation Free (ODF) status, management of household waste and faecal sludge, as well as drinking water supply, rainwater harvesting, and water recycling.
Read also : Health insurance premiums cross ₹1.2 lakh crore in 2024-25 as sector expands at around 9 per cent
