The Union Government has sanctioned and released Fifteenth Finance Commission untied and tied grants totalling Rs. 5.9205 billion (bn) to strengthen Panchayati Raj Institutions in Goa and Maharashtra. The release was recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti and effected through the Ministry of Finance. The grants form part of XV Finance Commission allocations for rural local bodies in the relevant financial years and are intended to reinforce local governance and service delivery at grassroots level.

In Maharashtra the withheld first instalment of untied grants for FY 2024–25 amounting to Rs. 798.2 million (mn) was released to 12 District Panchayats, 125 Block Panchayats and 27 Gram Panchayats. A further Rs. 2,218.2 mn from the withheld second instalment was released to an additional 12 District Panchayats, 125 Block Panchayats and 5,249 Gram Panchayats. For tied grants relating to FY 2023–24 the Government released Rs. 1,593.2 mn and Rs. 1,186.9 mn covering district, block and gram panchayats in the State.

In Goa the first instalment of untied grants for FY 2024–25 amounting to Rs. 124.0 mn was released covering two District Panchayats and all 191 Gram Panchayats. Untied grants are to be utilised by Panchayati Raj Institutions and rural local bodies for location specific needs under the twenty nine subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and other establishment costs. Tied grants are allocated for basic services such as sanitation, maintenance of open defecation free status, and supply of drinking water including rainwater harvesting and water recycling.

The allocation and release process follows recommendations from the relevant ministries and is executed in two instalments in a financial year to enhance local capacity for managing basic services and infrastructure. The Government stated that the grants will support management and treatment of household waste and fecal sludge as well as water supply measures at village level. State and local bodies are expected to deploy the funds for identified priorities to strengthen rural governance and service delivery.