Centre Releases Over Rs 15 bn as XV FC Grants to Rural Bodies

03 Apr 2026 CW Team

The Union Government has released over Rs 15 bn in grants recommended by the Fifteenth Finance Commission (XV FC) to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in six states. The funds comprise tied and untied grants disbursed in FY 2025–26.

Telangana received Rs 2.48 bn as the first instalment of untied grants for FY 2025–26, benefitting 12600 Gram Panchayats (GPs). Uttarakhand received Rs 913.1 mn as the second instalment and an additional Rs 18.4 mn of a withheld first instalment was released to a further 216 GPs. Mizoram is included among beneficiary states.

Rajasthan received Rs 3.16 bn as the second instalment of untied grants for FY 2025–26 for 33 District Panchayats (DPs), 352 Block Panchayats (BPs) and 3857 eligible GPs, together with Rs 125.7 mn of withheld first instalment amounts released to nine Zilla Panchayats and 13 BPs. Meghalaya received Rs 270 mn as the second instalment of untied grants for FY 2021–22 for three Autonomous District Councils and Rs 222 mn as the second instalment of tied grants for 816 Village Councils.

Maharashtra received withheld portions including Rs 1.09 bn released for the first and second instalments of tied grants in FY 2025–26, Rs 1.17 bn for a withheld portion of the first instalment of tied grants for FY 2024–25 and Rs 3.29 bn as the withheld portion of the second instalment of tied grants for FY 2024–25 covering additional DPs, BPs and thousands of GPs. It also received Rs 727.0 mn as the withheld portions of the first and second instalments of untied grants for FY 2025–26. The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommended the releases to the Ministry of Finance and untied grants may be used by PRIs and RLBs under the Eleventh Schedule except for salaries and establishment costs while tied grants target sanitation and drinking water services.

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