**Executive Summary**
On March 17, 2026, the Union Government released over ₹1,789 crores in Fifteenth Finance Commission (XV-FC) Untied Grants to Rural Local Bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra. These funds, covering various installments and withheld portions from FY 2022–23 to FY 2025–26, are intended to strengthen rural governance. The disbursement facilitates local development and basic service provision across District, Block, and Gram Panchayats.
**Key Points / Main Content**
**State-Specific Fund Disbursements**
* **Chhattisgarh:** Released ₹232.60 crores as the 2nd installment for all 33 District Panchayats (DPs), 146 Block Panchayats (BPs), and 11,693 Gram Panchayats (GPs), plus ₹8.0238 crores in withheld 1st installment funds.
* **Gujarat:** Allocated ₹509.2177 crores as the 2nd installment for 33 DPs, 247 BPs, and 14,563 GPs, along with ₹14.64 lakhs in withheld funds.
* **Madhya Pradesh:** Disbursed ₹630.6454 crores (1st installment) and ₹104.6556 crores in withheld portions for FY 2023–24, benefiting 51 DPs, 296 BPs, and 22,914 GPs.
* **Telangana:** Released ₹256.2101 crores as the 2nd installment for FY 2024–25, covering 12,702 GPs.
* **Maharashtra:** Provided ₹151.1856 crores as the withheld portion of installments from FY 2022–23 for 12 DPs, 125 BPs, and 324 GPs.
**Grant Utilization Rules**
* **Untied Grants:** Must be used for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution.
* **Prohibited Expenses:** Grants cannot be used for salaries or other establishment costs.
* **Tied Grants:** Specifically earmarked for sanitation (maintaining ODF status, waste management, fecal sludge treatment) and drinking water services (rainwater harvesting and recycling).
**Administrative Framework**
* **Recommendation Process:** The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of funds.
* **Release Mechanism:** The Ministry of Finance executes the disbursement in two installments per financial year.
**Impact Analysis**
**Rural Local Bodies (PRIs/RLBs)**
**Impact**
Eligible District, Block, and Gram Panchayats receive significant funding to address local development priorities and maintain essential infrastructure.
**Action Required**
RLBs must allocate Untied Grants to projects within the Eleventh Schedule framework and ensure no funds are diverted toward establishment costs or salaries.
**State Governments (Five Beneficiary States)**
**Impact**
State administrations receive the necessary liquidity to support rural governance and settle previously withheld financial installments.
**Action Required**
States must oversee the effective distribution of funds to the respective panchayat tiers and ensure adherence to the specific utilization categories for Tied and Untied grants.
Key Entities Referenced
Fifteenth Finance Commission (XV-FC): The constitutional body whose recommendations govern the allocation of 'Untied Grants' to strengthen rural local governance and infrastructure.
Panchayati Raj Institutions (PRIs): The three-tier system of rural local bodies (Gram, Block, and District Panchayats) that receive and utilize these grants for local developmental needs.
Eleventh Schedule of the Constitution: The constitutional framework listing twenty-nine subjects that define the functional scope for which PRIs can utilize untied grants.
Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra: The five specific states identified as the beneficiaries of the current disbursement of over ₹1,789 crores for their respective rural local bodies.
Ministry of Panchayati Raj
Centre Disburses Over ₹1,789 Crores XV FC
Grants to Rural Local Bodies in Five States
PRIs of Chhattisgarh, Gujarat, Madhya Pradesh, Telangana
and Maharashtra to Benefit
Posted On: 17 MAR 2026 2:48PM by PIB Delhi
The Union Government has released Fifteenth Finance Commission (XV-FC) Untied Grants for
Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in the States of Chhattisgarh, Gujarat,
Madhya Pradesh, Telangana and Maharashtra during FY 2025–26. This release covers allocations
pertaining to different financial years and aims to further strengthen rural local governance.
In Chhattisgarh, the 2nd installment of Untied Grants amounting to ₹232.60 crores has been released
for all eligible 33 District Panchayats (DPs), 146 Block Panchayats (BPs) and 11,693 Gram Panchayats
(GPs). Additionally, ₹8.0238 crores of the withheld portion of the 1st installment have been released to 1
DP, 8 BPs and 350 GPs. Similarly, Gujarat has received ₹509.2177 crores as the 2nd installment
covering 33 DPs, 247 BPs and 14,563 GPs, along with ₹14.64 lakhs of the withheld portion released to 2
additional GPs.
For Madhya Pradesh, ₹630.6454 crores have been released as the 1st installment of Untied Grants for
51 DPs, 296 BPs and 22,914 GPs along with ₹104.6556 crores of the withheld portion of the 1st and 2nd
installments for FY 2023–24 to additionally eligible 21 DPs, 106 BPs and 834 GPs. In Telangana,
₹256.2101 crores have been released as the 2nd installment (for FY 2024–25) covering 12,702 GPs.
While Maharashtra has received ₹151.1856 crores as the withheld portion of the 1st and 2nd
installments for FY 2022–23, benefiting 12 DPs, 125 BPs and 324 GPs.
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 Panchayati Raj
Institutions/ 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
RLBs 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.
*****
AA
(Release ID: 2241128) Visitor Counter : 229Read this release in: Urdu , ही , Marathi , Gujarati , Telugu