The Union Government has released Fifteenth Finance Commission untied grants for Panchayati Raj Institutions and rural local bodies in Goa, Meghalaya, Sikkim and Uttarakhand for FY 2025–26, totalling Rs 1.377557 billion (bn) (1,377.557 million (mn)). The grants are intended to strengthen rural local governance and address location specific priorities. The releases follow recommendations by the Ministry of Panchayati Raj and the Ministry of Jal Shakti and are effected by the Ministry of Finance.

In Goa, Rs 116 mn was released as the second instalment for FY 2023–24 for two District Panchayats and 191 Gram Panchayats, and Rs 29.79 mn was released as the withheld portion of the first instalment for two additionally eligible District Panchayats and 24 Gram Panchayats. The funds are untied and may be used for local development priorities excluding salaries and establishment costs. The allocation mechanism allows flexibility to respond to local needs.

For Meghalaya, Rs 270 mn was released as the second instalment for FY 2021–22, covering the three Autonomous District Councils of Khasi, Garo and Jaintia. For Sikkim, Rs 66 mn was released as the second instalment for FY 2025–26 to benefit six District Panchayats and 199 Gram Panchayats, and an additional Rs 1.65 mn was released as the withheld portion of the first instalment to one additionally eligible District Panchayat. The disbursements reflect eligibility reviews and adjustments.

In Uttarakhand, Rs 894.117 mn was released as the first instalment for FY 2025–26, covering 13 District Panchayats, 95 Block Panchayats and 7,568 Gram Panchayats. The instalment aims to provide timely funds for basic services and maintenance of infrastructure.

The untied grants will be utilised by Panchayati Raj Institutions and rural local bodies for location specific felt needs under 29 subjects in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. Tied grants will support sanitation, household waste and faecal sludge management, and supply of drinking water, rainwater harvesting and water recycling.