The Union Government has released Rs 5.1227 billion as Fifteenth Finance Commission (XV-FC) grants for Rural Local Bodies in Gujarat for the financial year 2025–26. The release includes Rs 5.0907 billion as the first instalment of Untied Grants for 14,561 eligible Gram Panchayats, 247 Block Panchayats and all 33 District Panchayats across the State.

An additional Rs 32 million, representing the withheld portion of the first and second instalments of Untied Grants for FY 2024–25, has also been released to 47 newly eligible Gram Panchayats and one Block Panchayat.

The grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) and released by the Ministry of Finance in two instalments each year. Untied Grants can be used by Panchayati Raj Institutions for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied Grants are earmarked for basic services, including sanitation and maintenance of ODF status, management of household waste and faecal sludge, as well as drinking water supply, rainwater harvesting and water recycling.