**Executive Summary**
The Union Government has released XVth Finance Commission Grants for Financial Year 2025-26 to Rajasthan and Jharkhand to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs). The release, dated 26 DEC 2025, includes funds for both FY 2025-26 and withheld portions of FY 2024-25. The grants will be released in two installments.
**Key Points / Main Content**
* **Grant Allocation:**
* Over ₹723 crores released for Rural Local Bodies in Rajasthan and Jharkhand.
* Grants aim to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs).
* **Rajasthan:**
* ₹303.0419 crores released as the first installment of Untied Grants for FY 2025-26.
* Beneficiaries: 24 District Panchayats, 339 Block Panchayats, and 3,857 Gram Panchayats.
* ₹145.24 crores released for the withheld portion of the first and second installments of Untied Grants for FY 2024-25 to additionally eligible Rural Local Bodies.
* **Jharkhand:**
* ₹275.1253 crores released as the first installment of Untied Grants for FY 2024-25.
* Beneficiaries: 24 District Panchayats, 253 Block Panchayats, and 4,342 Gram Panchayats.
* **Grant Utilization:**
* Untied Grants: For location-specific felt needs under the Twenty-Nine Subjects in the Eleventh Schedule of the Constitution, except salaries and other establishment costs.
* Tied Grants: For basic services, including sanitation (ODF status maintenance, household waste, human excreta and fecal sludge management), and drinking water supply, rainwater harvesting, and water recycling.
* **Grant Release Process:**
* Recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti.
* Released by the Ministry of Finance.
* Allocated grants released in 2 installments in a financial year.
**Impact Analysis**
**Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Rajasthan and Jharkhand**
* **Impact:** Financial resources for development and maintenance of rural infrastructure and services will increase.
* **Action Required:** Utilize the grants for the intended purposes, prioritize location-specific needs, and comply with the guidelines for Tied and Untied Grants.
Key Entities Referenced
Fifteenth Finance Commission (XV FC) Grants: Grants released to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Rajasthan and Jharkhand.
Rajasthan: One of the states receiving grants for Rural Local Bodies under the Fifteenth Finance Commission.
Jharkhand: One of the states receiving grants for Rural Local Bodies under the Fifteenth Finance Commission.
Ministry of Panchayati Raj: The ministry involved in recommending the release of XV-FC grants to States for Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs).
Rural Local Bodies (RLBs): The recipients of the grants released under the Fifteenth Finance Commission.
Ministry of Panchayati Raj
Centre Releases Over ₹723 Crores as grants for
Rural Local Bodies in Rajasthan and Jharkhand
under XVth Finance Commission
प्रव तथ: 26 DEC 2025 3:21PM by PIB Delhi
The Union Government has released Fifteenth Finance Commission (XV FC) Grants during the
Financial Year 2025–26 to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs)
in Rajasthan and Jharkhand. In Rajasthan, the first instalment of Untied Grants for FY 2025–26
amounting to ₹303.0419 crores has been released for eligible 24 District Panchayats, 339 Block
Panchayats, and 3,857 Gram Panchayats of the State. Further, ₹145.24 crores of the withheld portion of
the first and second instalments of Untied Grants for FY 2024–25 has also been released to
additionally eligible Rural Local Bodies in Rajasthan. While for the State of Jharkhand, the Union
Government has released the first instalment of Untied Grants for FY 2024–25 amounting to
₹275.1253 crores for all eligible 24 District Panchayats, 253 eligible Block Panchayats, and 4,342 eligible
Gram Panchayats across the State.
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 (PRIs) / Rural Local Bodies (RLBs) 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 PRIs/ 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.
***
TPJ
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