The Union Government has released Rs. 43,839.8 mn as tied and untied grants under the Fifteenth Finance Commission to Panchayati Raj Institutions (PRIs) and rural local bodies in Bihar, Uttar Pradesh, Jharkhand and Maharashtra for financial year 2025–26. The disbursement covers allocations pertaining to different financial years and is intended to strengthen rural local governance through targeted funding. The release was routed following recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti and subsequent sanction by the Ministry of Finance.

For Bihar the second instalment of tied grants for FY 2025–26 amounted to Rs. 12,036 mn and was disbursed to all 38 district panchayats, 533 block panchayats and 8,053 gram panchayats, with an additional release of Rs. 20.9 mn from the withheld portion of the first instalment for three block panchayats and seven gram panchayats that became eligible. For Uttar Pradesh the second instalment totalled Rs. 23,391 mn and reached all 75 district panchayats, 826 block panchayats and 57,694 gram panchayats, while Rs. 165.2 mn from the withheld portion of the first instalment was released to additionally eligible two district panchayats, 13 block panchayats and 61 gram panchayats.

In Jharkhand tied grants of Rs. 4,126.9 mn were allocated to 24 district panchayats, 253 eligible block panchayats and 4,342 eligible gram panchayats. Maharashtra received earlier withheld portions related to FY 2022–23 and FY 2023–24, including Rs. 1,040.4 mn and Rs. 1,206.1 mn from tied grant withholdings and Rs. 1,062 mn and Rs. 791.3 mn from untied grant withholdings for specified additionally eligible local bodies.

The government indicated that XV-FC grants are recommended and released in two instalments in a financial year and that untied grants are to be utilised by PRIs for location specific felt needs under the twenty-nine subjects enshrined in the eleventh schedule, except salaries and establishment costs. Tied grants are to be used for basic services related to sanitation including waste and faecal sludge management and for supply of drinking water, rainwater harvesting and water recycling.