The Union Government has released Rs 148 million (Rs 148 mn) as grants from the Fifteenth Finance Commission (XV FC) for the financial year 2025–26 to Rural Local Bodies (RLBs) in Mizoram. This release constitutes the first instalment of untied grants for the year and will benefit all eligible 816 Village Councils in the State. The allocation is intended to provide flexible resources to address local priorities within the constitutional framework.

The grants were recommended by the Ministry of Panchayati Raj together with the Ministry of Jal Shakti, Department of Drinking Water and Sanitation, and were released by the Ministry of Finance. Allocations under the XV FC are released in two instalments in a financial year and are earmarked as untied and tied components to address broad and specific needs. The untied component permits councils to plan for location specific projects, while the tied component focuses on basic services.

The untied grants may be utilised by RLBs for location specific felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, with the exception of salaries and other establishment costs. The tied grants are designated for basic services such as sanitation and maintenance of open defecation free status, including management and treatment of household waste and human excreta and faecal sludge management. They also cover supply of drinking water, rainwater harvesting and water recycling projects that fall within local responsibility.

The release to all eligible Village Councils is expected to strengthen decentralised delivery of services and reinforce local planning and maintenance capacity. Councils are required to utilise these funds in accordance with the prescribed guidelines and priorities set out by the respective ministries. The infusion of funds in Mizoram reflects the central government's continued support for rural governance and service delivery at the grass roots.