The Union Government has released Fifteenth Finance Commission grants for the financial year 2025-26 to Panchayati Raj Institutions and rural local bodies in Assam. The total allocation amounts to Rs 2.993 billion (bn), comprising a second instalment of untied grants of Rs 2,566 million (mn) and a withheld portion of Rs 427 million released to three additionally eligible autonomous district councils. The three autonomous district councils are the Bodoland Territorial Council, Karbi Anglong Autonomous Council and Dima Hasao Autonomous Council. The funds are intended for local development and basic services at the village and block levels.

The untied grants cover all eligible 27 District Panchayats, all eligible 182 Block Panchayats and all eligible 2,192 Gram Panchayats in the State. The allocation mechanism follows recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti, Department of Drinking Water and Sanitation, with final release by the Ministry of Finance. Allocations are released in two instalments each financial year and are meant to be used for location specific felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. The untied funds expressly exclude use for salaries and other establishment costs.

Tied grants are earmarked for basic services related to sanitation and the maintenance of open defecation free status and should include management and treatment of household waste and human excreta and faecal sludge management. They are also to support supply of drinking water, rainwater harvesting and water recycling. Panchayati Raj Institutions and rural local bodies are expected to prioritise projects that improve access to these services and strengthen local infrastructure. The departments have emphasised accountability and targeted use of funds in accordance with guidelines.

The release aims to bolster local capacities and enable responsive responses to community priorities during the current financial year. Authorities will monitor utilisation and compliance with the stipulated uses to ensure that allocations translate into improved service delivery. Continued coordination among ministries and local institutions is expected to guide effective implementation.