The Union Government has released Rs 942.36 million as Fifteenth Finance Commission grants to rural local bodies and Panchayati Raj Institutions in Uttarakhand during the 2025–26 financial year. The release includes the second instalment of untied grants for 2024–25 amounting to Rs 941.00 million for all eligible 13 district panchayats, 95 block panchayats and 7,784 gram panchayats across the state. In addition, Rs 1.36 million has been released towards the withheld portion of the first instalment of untied grants for 2024–25 to 15 newly eligible gram panchayats.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti, Department of Drinking Water and Sanitation, recommend the release of Fifteenth Finance Commission grants for rural local bodies and Panchayati Raj Institutions, which are subsequently disbursed by the Ministry of Finance in two instalments each financial year. Untied grants are intended to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment-related expenditure. Tied grants are earmarked for basic services, including sanitation and maintenance of open defecation free status, management and treatment of household waste, human excreta and faecal sludge, as well as drinking water supply, rainwater harvesting and water recycling.