**Executive Summary**
The Union Government has released Rs. 1,536.14 crores in Fifteenth Finance Commission (XV-FC) Tied and Untied grants for the financial year 2025-26. These funds are designated for Panchayati Raj Institutions (PRIs) across eight states to strengthen rural local governance and cover both regular and withheld installments. The disbursement supports essential services and local development projects through the period ending March 31, 2026.
**Key Points / Main Content**
**Financial Disbursement Overview**
* **Total Amount:** Rs. 1,536.14 crores released to eight states: Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana, and Uttarakhand.
* **Installment Types:** The release includes regular installments for FY 2025-26 and withheld portions from previous financial years (e.g., FY 2022-23 for Arunachal Pradesh and FY 2024-25 for Jharkhand).
**Grant Classification and Permitted Usage**
* **Untied Grants:** To be utilized by PRIs for location-specific felt needs across 29 subjects listed in the Eleventh Schedule of the Constitution. These cannot be used for salaries or establishment costs.
* **Tied Grants:** Specifically earmarked for basic services, including:
* Sanitation and maintenance of Open Defecation Free (ODF) status.
* Management and treatment of household waste, human excreta, and fecal sludge.
* Supply of drinking water, rainwater harvesting, and water recycling.
**Administrative Framework**
* **Recommendation Process:** The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of grants.
* **Release Mechanism:** The Department of Expenditure, Ministry of Finance, executes the release in two installments per financial year.
* **Commission Timeline:** The XV-FC recommendations cover a six-year period concluding on March 31, 2026.
**Impact Analysis**
**Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs)**
**Impact**
Eligible Gram Panchayats (GPs), Block Panchayats (BPs), and District/Zila Panchayats (DPs/ZPs) receive significant financial resources to improve rural infrastructure and public health services.
**Action Required**
Implement projects aligned with XV-FC guidelines, ensuring Untied grants address local needs (excluding salaries) and Tied grants focus strictly on sanitation and water supply.
**State Governments (8 Recipient States)**
**Impact**
The state administrations of Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana, and Uttarakhand receive funds to bolster governance at the grassroots level and settle previous withheld claims.
**Action Required**
Ensure the efficient distribution of funds to the identified eligible rural local bodies and oversee the adherence to operational guidelines issued by the Ministry of Finance.
**Rural Residents**
**Impact**
Citizens in the impacted states benefit from improved sanitation, better waste management, and enhanced access to clean drinking water and water conservation facilities.
**Action Required**
No direct action is required; however, residents are the primary beneficiaries of the localized projects funded by these grants.
Key Entities Referenced
Fifteenth Finance Commission (XV-FC): The constitutional body whose recommendations govern the allocation and distribution of financial grants to rural local bodies for the period ending March 2026.
Panchayati Raj Institutions (PRIs): The multi-tier system of rural local governance, including Gram, Block, and District Panchayats, which receives grants to strengthen local governance and service delivery.
Ministry of Panchayati Raj: The nodal central ministry responsible for recommending the release of Finance Commission grants to states and overseeing the empowerment of rural local bodies.
Eleventh Schedule of the Constitution: The constitutional provision listing 29 functional subjects that define the scope for utilizing untied grants by local bodies for location-specific needs.
Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana & Uttarakhand: The specific states for which the Union Government disbursed over Rs. 1,536 crores in grants to boost rural local governance.
Ministry of Panchayati Raj
Centre Disburses Over Rs. 1536 Crores as XV FC
Grants Across 8 States to Boost Rural Local
Governance
PRIs in Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha,
Rajasthan, Telangana & Uttarakhand Strengthened
Posted On: 01 APR 2026 4:26PM by PIB Delhi
The Union Government has released Fifteenth Finance Commission (XV-FC) Tied and Untied grants
during Financial Year 2025-26 for Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in
Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana and Uttarakhand.
The releases cover regular installments as well as withheld portions pertaining to various financial years.
The total amount released aggregates to Rs.1,536.14 crores, aimed at further strengthening rural local
governance across these States.
State-wise Details of XV Finance Commission (Tied and Untied) Grants Released during FY 2025-
26:
Sl. Name of State Grant Amount Installment / Year Eligible Panchayats
No. Component (Rs. in of the State
Crore)
1. Arunachal Tied 53.10 1st Installment for FY All 25 eligible DPs
Pradesh 2022-23 and all 2108 eligible
GPs
2. Goa Tied 18.27 1st Installment for FY All 2 eligible DPs
2024-25 and 187 eligible GPs
3. Gujarat Untied 2.98 Withheld portion of 1st Additionally 1
and 2nd Installments eligible BP, 21
for FY 2025-26 eligible GPs and all
23 newly constituted
GPs (for both
installments)Sl. Name of State Grant Amount Installment / Year Eligible Panchayats
No. Component (Rs. in of the State
Crore)
Tied 4.47 Withheld portion of 1st Additionally 1
and 2nd Installments eligible BP, 21
for FY 2025-26 eligible GPs and all
23 newly constituted
GPs (for both
installments)
4. Jharkhand Tied 405.23 1st Installment for FY All 24 eligible DPs,
2025-26 all 264 eligible BPs
and 4344 eligible
GPs
Tied 2.67 Withheld portion of 1st Additionally 11
Installment for FY eligible BPs and 1
2024-25 eligible GP
Tied 2.67 Withheld portion of Additionally 11
2nd Installment for FY eligible BPs and 1
2024-25 eligible GP
5. Odisha Tied 53.13 Withheld portion of 1st Additionally 10
and 2nd Installments eligible DPs, 17
for FY 2025-26 eligible BPs and 40
eligible GPs (for
both installments)
and 15 eligible GPs
(for 2nd installment
only)
6. Rajasthan Tied 466.79 2nd Installment for FY 32 eligible DPs, 347
2025-26 eligible BPs and
3857 eligible GPs
Tied 15.44 Withheld portion of 1st Additionally 8
Installment for FY eligible ZPs and 8
2025-26 eligible BPs
7. Telangana Tied 371.91 1st Installment for FY 12600 eligible GPs
2025-26Sl. Name of State Grant Amount Installment / Year Eligible Panchayats
No. Component (Rs. in of the State
Crore)
8. Uttarakhand Tied 136.58 2nd Installment for FY All 13 eligible DPs,
2025-26 94 eligible BPs and
7766 eligible GPs
Tied 2.90 Withheld portion of 1st Additionally 2
Installment for FY eligible BPs and 198
2025-26 eligible GPs
Grand Total Rs.
1,536.14
crore
*GPs / BPs / DPs / ZPs: Gram Panchayats / Block Panchayats / District Panchayats / Zila Panchayats
Background
In terms of the Operational Guidelines for implementation of Fifteenth Finance Commission Grants to
Rural Local Bodies (RLBs) issued by the Department of Expenditure, Ministry of Finance, the
Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department
of Drinking Water and Sanitation), recommends release of XV-FC grants to States for Rural Local Bodies,
which are thereafter released by the Ministry of Finance. The allocated grants are recommended and
released in two installments in a financial year. The recommendations of the Fifteenth Finance
Commission covered a six-year period up to 31st March 2026.
The Untied grants are 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,
including 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
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