**Executive Summary**
The Union Government has released ₹1,133 crores as Fifteenth Finance Commission (XV FC) grants to strengthen Panchayati Raj Institutions (PRIs)/ Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana during FY 2025-26. This release includes installments of Untied Grants for FY 2023-24, FY 2024-25, and FY 2025-26, benefiting various Panchayats across the three states. The grants are for location-specific needs under the Eleventh Schedule of the Constitution.
**Key Points / Main Content**
* **Total Grant Release:**
* Over ₹1,133 crores released to Madhya Pradesh, Punjab, and Telangana.
* **Madhya Pradesh:**
* ₹652.55 crores released as the second installment of Untied Grants for FY 2024-25.
* Benefits 52 District Panchayats, 312 Block Panchayats, and 23,001 Gram Panchayats.
* ₹77 lakhs released as the withheld portion of the first installment of Untied Grants for FY 2024-25.
* **Punjab:**
* ₹222 crores released as the first installment of Untied Grants for FY 2025-26.
* Supports 22 District Panchayats, 150 Block Panchayats, and 13,262 Gram Panchayats.
* **Telangana:**
* ₹256.0295 crores released as the first installment of Untied Grants for FY 2024-25.
* Benefits 12,702 Gram Panchayats.
* ₹33.18 lakhs released as the withheld portion of the second installment of Untied Grants for FY 2023-24.
* **Grant Utilization:**
* To be used 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 (excluding salaries and establishment costs).
* Tied Grants can be used for:
* Sanitation and maintenance of ODF status (including household waste, human excreta, and fecal sludge management).
* Supply of drinking water, rainwater harvesting, and water recycling.
**Impact Analysis**
**Stakeholders Impacted:**
* Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana.
**Impact**
* Increased funding for local development and infrastructure.
* Improved ability to address location-specific needs.
* Enhanced resources for sanitation, drinking water, and waste management.
**Action Required**
* Utilize the grants for approved activities as per the Eleventh Schedule of the Constitution.
* Prioritize sanitation, drinking water, and waste management projects using Tied Grants.
* Ensure proper management and accounting of funds.
Key Entities Referenced
Fifteenth Finance Commission (XV FC): The body that provides grants to strengthen Panchayati Raj Institutions and Rural Local Bodies. The allocation is used for felt needs, sanitation, drinking water and other basic services, excluding salaries.
Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs): Local government bodies at the village, block, and district levels in rural India that receive grants for development activities.
Madhya Pradesh, Punjab and Telangana: The states receiving XV FC grants for Panchayati Raj Institutions and Rural Local Bodies development.
Ministry of Panchayati Raj: The Union Government ministry primarily responsible for recommending the release of XV FC grants.
Ministry of Panchayati Raj
Centre Releases Over ₹1,133 Crores as XV FC
Grants to Strengthen Panchayati Raj Institutions
in Madhya Pradesh, Punjab and Telangana
Posted On: 06 FEB 2026 4:04PM by PIB Delhi
The Union Government has released over ₹1,133 crores as Fifteenth Finance Commission (XV FC) grants
during FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in
Madhya Pradesh, Punjab and Telangana.
In Madhya Pradesh, an amount of ₹65,255 lakhs (₹652.55 crores) has been released as the second
instalment of Untied Grants for FY 2024–25. The funds will benefit all 52 eligible District Panchayats,
312 eligible Block Panchayats and 23,001 eligible Gram Panchayats in the State. Additionally, ₹77 lakhs
representing the withheld portion of the first instalment of Untied Grants for FY 2024–25, has also been
released to 3 additionally eligible Block Panchayats and 6 Gram Panchayats. For Punjab, the Union
Government has released ₹22,200 lakhs (₹222 crores) as the first instalment of Untied Grants for FY
2025–26. These funds will support all 13,262 eligible Gram Panchayats, 150 eligible Block Panchayats
and 22 eligible District Panchayats across the State. While for the State of Telangana, ₹25,602.95 lakhs
(₹256.0295 crores) has been released as the first instalment of Untied Grants for FY 2024–25, benefiting
12,702 eligible Gram Panchayats. Further, ₹233.18 lakhs, being the withheld portion of the second
instalment of Untied Grants for FY 2023–24, has also been released to 11 additionally eligible Gram
Panchayats and 40 Block 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,
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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