**Executive Summary**
The Union Government sanctioned and released the second installment of Fifteenth Finance Commission (XV FC) Untied Grants for FY 2025-26 to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Bihar, Haryana, Himachal Pradesh, Uttar Pradesh, and West Bengal. The funds aim to empower grassroots governance and enable need-based local development. The information was posted on Feb 12, 2026.
**Key Points / Main Content**
* **Financial Allocations:**
* Bihar: Received Rs. 80,240.00 lakhs (Rs. 802.40 crores) benefiting 38 DPs, 533 BPs and 8,053 GPs, along with additional release from withheld portion of 1st installment for 3 BPs and 7 GPs that have since become eligible.
* Haryana: Provided Rs. 19,762.70 lakhs (Rs. 197.627 crores) covering 19 DPs, 138 BPs and 6,194 GPs, with a further amount released to additionally eligible 1 DP, 4 BPs and 30 GPs from the earlier withheld amount.
* Himachal Pradesh: Allocation stands at Rs. 6,830.03 lakhs (Rs. 68.30 crores) for 12 DPs, 80 BPs and 3,602 GPs, supplemented by released to newly eligible GPs.
* Uttar Pradesh: Received Rs. 1,55,940.00 lakhs (Rs. 1,559.40 crores) for 75 DPs, 826 BPs and 57,694 GPs, in addition to released from the withheld portion to DPs, BPs and GPs that attained eligibility.
* West Bengal: Allocated Rs. 68,085.79 lakhs (Rs. 680.86 crores) for eligible 21 DPs, 335 BPs and 3,225 GPs under the same installment.
* **Grant Release and Utilization:**
* XV-FC grants are released to States for Rural Local Bodies through the Ministry of Panchayati Raj and Ministry of Jal Shakti, and then released by the Ministry of Finance.
* Allocated grants are recommended and released in 2 installments in a financial year.
* Untied Grants are utilized by PRIs/RLBs for location-specific felt needs, under the Twenty-Nine Subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.
* Tied Grants can be used for:
* Sanitation and maintenance of ODF status, including management and treatment of household waste, human excreta, and fecal sludge.
* Supply of drinking water, rainwater harvesting, and water recycling.
**Impact Analysis**
* **Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs)**
* **Impact:** PRIs/RLBs receive funding to empower grassroots governance and enable need-based local development.
* **Action Required:** Utilize the Untied Grants for location-specific felt needs, under the Twenty-Nine Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs and use the Tied Grants for sanitation and supply of water.
Key Entities Referenced
Fifteenth Finance Commission (XV FC): The entity providing untied grants to Panchayati Raj Institutions/Rural Local Bodies.
Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs): Recipients of the XV FC untied grants aimed at empowering grassroots governance and enabling need-based local development.
Ministry of Panchayati Raj: The central ministry recommending the release of XV-FC grants.
Ministry of Jal Shakti: The central ministry recommending the release of XV-FC grants.
Bihar, Haryana, Himachal Pradesh, Uttar Pradesh and West Bengal: The states benefiting from the release of grants to strengthen Rural Local Bodies
Ministry of Panchayati Raj
Center Releases Over ₹3,324 Crores to
Strengthen Rural Local Bodies in Bihar, Haryana,
Himachal Pradesh, Uttar Pradesh and West
Bengal
Posted On: 12 FEB 2026 7:16PM by PIB Delhi
The Union Government has sanctioned and released the 2nd installment of Fifteenth Finance Commission
(XV FC) Untied Grants for FY 2025–26 to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs)
in Bihar, Haryana, Himachal Pradesh, Uttar Pradesh and West Bengal to further empower grassroots
governance and enable need-based local development.
Under this tranche, Bihar has received Rs. 80,240.00 lakhs (Rs. 802.40 crores) benefiting all 38 District
Panchayats (DPs), 533 Block Panchayats (BPs) and 8,053 Gram Panchayats (GPs), along with an
additional release of Rs. 139.10 lakh (Rs. 1.39 crores) from the withheld portion of the 1st installment for
3 BPs and 7 GPs that have since become eligible. Similarly, Haryana has been provided Rs. 19,762.70
lakhs (Rs. 197.627 crores) covering eligible 19 DPs, 138 BPs and 6,194 GPs, with a further Rs. 249.80
lakhs (Rs. 2.50 crores) released to additionally eligible 1 DP, 4 BPs and 30 GPs from the earlier withheld
amount.
For Himachal Pradesh, the allocation stands at Rs. 6,830.03 lakhs (Rs. 68.30 crores) for all 12 DPs,
eligible 80 BPs and 3,602 GPs, supplemented by Rs. 34.53 lakh (Rs. 0.35 crores) released to 26 newly
eligible GPs. Uttar Pradesh has received Rs. 1,55,940.00 lakhs (Rs. 1,559.40 crores) for all 75 DPs,
826 BPs and 57,694 GPs, in addition to Rs. 1,101.64 lakhs (Rs. 11.016 crores) released from the withheld
portion to 2 DPs, 13 BPs and 61 GPs that attained eligibility. Further, West Bengal has been allocated
Rs. 68,085.79 lakhs (Rs. 680.86 crores) for eligible 21 DPs, 335 BPs and 3,225 GPs under the same
installment.
Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of
Drinking Water and Sanitation) recommends release of XV-FC grants to States for Rural Local Bodies,
which is then released by Ministry of Finance. The allocated grants are recommended and released in 2
installments in a financial year. The Untied Grants will be utilized by Panchayati Raj Institutions/ Rural
Local Bodies for location-specific felt needs, under the Twenty-Nine Subjects enshrined in the Eleventh
Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be
used for the basic services of (a) sanitation and maintenance of ODF status, and this should include
management and treatment of household waste, and human excreta and fecal sludge management in
particular and (b) supply of drinking water, rainwater harvesting and water recycling.
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