Centre Releases XV Finance Commission Grants to States to Strengthen Rural Governance

New Delhi, Mar 31(TNT): The Union Government has released Fifteenth Finance Commission (XV FC) tied and untied grants for FY 2025–26 to several states, including Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram and Meghalaya, aimed at strengthening grassroots governance and enabling need-based development in Panchayati Raj Institutions (PRIs).

For Telangana, ₹247.94 crore has been released as the first instalment of untied grants for 2025–26, benefiting 12,600 eligible Gram Panchayats across the state.

In Uttarakhand, ₹91.31 crore has been released as the second instalment of untied grants for FY 2025–26, covering all 13 District Panchayats, 95 Block Panchayats and 7,784 Gram Panchayats.

Additionally, ₹1.84 crore has been released as the withheld portion of the first instalment for an additional 216 Gram Panchayats.

Rajasthan received ₹315.61 crore as the second instalment of untied grants for FY 2025–26, covering all 33 District Panchayats, 352 Block Panchayats and 3,857 Gram Panchayats.

An additional ₹12.57 crore was also released as withheld funds for nine Zilla Panchayats and 13 Block Panchayats.

Meghalaya has been granted ₹27 crore as the second instalment of untied grants for FY 2021–22 for its three Autonomous District Councils—Khasi, Garo and Jaintia.

The state also received ₹22.20 crore as the second instalment of tied grants for 816 eligible Village Councils.

For Maharashtra, multiple tranches of tied and untied grants have been released,  include ₹109.06 crore each as withheld portions of the first and second instalments of tied grants for FY 2025–26, benefiting 12 District Panchayats and 125 Block Panchayats.

Additionally, ₹116.97 crore and ₹329.21 crore have been released as withheld portions of tied grants for FY 2024–25, covering a wider set of local bodies.

Further, ₹72.70 crore each has been released as withheld portions of the first and second instalments of untied grants for FY 2025–26.

The grants are recommended by the Ministries of Panchayati Raj and Jal Shakti and released by the Ministry of Finance in two instalments annually.

Untied grants can be utilised by local bodies for location-specific needs across the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied grants are earmarked for essential services such as sanitation, maintenance of ODF status, waste management, and drinking water supply, including rainwater harvesting and water recycling.

TNT KS

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