The Union Government has released over Rs 11,330 million (mn) as Fifteenth Finance Commission grants during FY 2025–26 to strengthen Panchayati Raj Institutions and rural local bodies in Madhya Pradesh, Punjab and Telangana. The grants were recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti and released by the Ministry of Finance for location specific needs under the 29 Subjects in the 11th Schedule, excluding salaries and other establishment costs.

In Madhya Pradesh Rs 6,525.5 mn was released as the second instalment of untied grants for FY 2024–25, to benefit all 52 eligible District Panchayats, 312 eligible Block Panchayats and 23,001 eligible Gram Panchayats across the State. An additional Rs 7.7 mn representing the withheld portion of the first instalment for FY 2024–25 has been released to three additionally eligible Block Panchayats and six Gram Panchayats. The funding is intended to be used by local bodies for location specific felt needs under the constitutional mandate.

For Punjab the Union Government released Rs 2,220 mn as the first instalment of untied grants for FY 2025–26 to support 13,262 Gram Panchayats, 150 Block Panchayats and 22 District Panchayats. Telangana received Rs 2,560.295 mn as the first instalment of untied grants for FY 2024–25 benefiting 12,702 Gram Panchayats. In addition Rs 23.318 mn, the withheld portion of the second instalment for FY 2023–24, was released to 11 additionally eligible Gram Panchayats and 40 Block Panchayats.

The untied grants may be utilised by Panchayati Raj Institutions and rural local bodies for locally determined priorities, while tied grants are earmarked for basic services. Tied grants can be used for sanitation and maintenance of open defecation free status, including management and treatment of household waste and human excreta and faecal sludge management in particular. They can also support supply of drinking water, rainwater harvesting and water recycling.