Union Government has released Fifteenth Finance Commission tied and untied grants for the financial year 2025-26 to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in eight States, aiming to strengthen rural local governance.

The total amount released is Rs 15,361.4 million (mn), covering regular instalments as well as withheld portions from previous years. The releases were made for allocations recommended by the Fifteenth Finance Commission and processed through the Ministries responsible for local governance and drinking water.

The allocations cover Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana and Uttarakhand and include funds for eligible Gram Panchayats, Block Panchayats and District Panchayats. The instalments address both tied and untied components and reach a range of local bodies, with Telangana receiving funds for 12,600 eligible Gram Panchayats. The measures are intended to ensure that local councils can meet location specific priorities within the constitutional mandate.

State level disbursements converted to million values show Arunachal Pradesh receiving Rs 531.0 mn, Goa Rs 182.7 mn and Gujarat Rs 74.5 mn. Jharkhand received Rs 4,105.7 mn and Odisha Rs 531.3 mn, while Rajasthan was allocated Rs 4,822.3 mn. Telangana and Uttarakhand received Rs 3,719.1 mn and Rs 1,394.8 mn respectively, with the totals matching the aggregate release.

The operational guidelines require that untied grants be used by PRIs and RLBs for location specific needs under 29 subjects, excluding salaries and establishment costs, while tied grants are directed towards sanitation, maintenance of open defecation free status and water supply including rainwater harvesting and recycling. The grants are released in two instalments each financial year and are expected to improve basic services and local infrastructure delivery.