Date: 2025-09-25Category: Not ApplicableState: Union GovernmentCountry: India
Centre Disburses Over ₹2,400 Crores as 1st Installment of XV Finance Commission Grants to Rural Local Bodies of Bihar, Himachal Pradesh & Uttar Pradesh
On 25 SEP 2025, the Ministry of Panchayati Raj announced the disbursement of over 2,400 crores as the 1st installment of XV Finance Commission grants to Rural Local Bodies in Bihar, Himachal Pradesh, and Uttar Pradesh for the financial year 2025-26.
Bihar received Rs. 801.009 crores for 38 eligible District Panchayats, 530 Block Panchayats, and 8046 Gram Panchayats. Himachal Pradesh was allocated Rs. 67.955 crores for 12 District Panchayats, 80 Block Panchayats, and 3576 Gram Panchayats. Uttar Pradesh received Rs. 1548.3836 crores for 73 eligible District Panchayats, 813 Block Panchayats, and 57,633 Gram Panchayats.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of XV-FC grants, which are then released by the Ministry of Finance in two installments. The Untied Grants will be utilized for location-specific needs under the Twenty-Nine subjects enshrined in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. The Tied Grants will be used for basic services, including sanitation, ODF status maintenance, household waste management, human excreta and fecal sludge management, drinking water supply, rainwater harvesting, and water recycling.
Contact: Aditi Agrawal
Release ID: 2171335
Key Entities Referenced
XV Finance Commission: The Fifteenth Finance Commission, responsible for recommending the financial distribution between the Union and States.
Ministry of Panchayati Raj: Union government ministry responsible for recommending the release of grants to states for rural local bodies/Panchayati Raj Institutions.
Bihar, Himachal Pradesh & Uttar Pradesh: States that received the 1st Installment of XV Finance Commission Grants to Rural Local Bodies.
Untied Grants: Grants released to Rural Local Bodies/ Panchayati Raj Institutions for location-specific felt needs.
Tied Grants: Grants that can be used for the basic services of sanitation and maintenance of ODF status, and supply of drinking water, rainwater harvesting and water recycling
Ministry of Panchayati Raj
Centre Disburses Over 2,400 Crores as 1st
Installment of XV Finance Commission Grants to
Rural Local Bodies of Bihar, Himachal Pradesh &
Uttar Pradesh
Posted On: 25 SEP 2025 6:31PM by PIB Delhi
The Union Government has released the 1st installment of untied grants under the XV Finance Commission
for the financial year 2025–26 to Rural Local Bodies in Bihar, Himachal Pradesh and Uttar Pradesh. Bihar
has received Rs. 801.009 crores for 38 eligible District Panchayats, 530 Block Panchayats and 8046 Gram
Panchayats in the state. Himachal Pradesh has been allocated Rs. 67.955 crores covering all 12 District
Panchayats, 80 eligible Block Panchayats and 3576 Gram Panchayats. Uttar Pradesh received Rs.
1548.3836 crores for 73 eligible District Panchayats, 813 Block Panchayats, and 57,633 Gram Panchayats.
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/ Panchayati Raj Institutions, which are 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 Rural Local Bodies/ Panchayati Raj Institutions for location-specific felt needs, under
the Twenty–Nine (29) 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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Aditi Agrawal
(Release ID: 2171335)