**Executive Summary**
On March 31, 2026, the Union Government released over Rs. 1,500 crore in Fifteenth Finance Commission (XV FC) tied and untied grants to six states: Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya. These funds, covering various installments for FY 2025â26 and prior periods, are intended to empower rural local bodies and enhance grassroots governance. The grants are specifically allocated for local development needs, sanitation, and water supply projects.
**Key Points / Main Content**
**State-Specific Fund Allocations**
* **Telangana:** Rs. 247.94 crore released as the 1st installment of untied grants for 12,600 Gram Panchayats (GPs).
* **Uttarakhand:** Rs. 91.31 crore released as the 2nd installment of untied grants for all 13 District Panchayats (DPs), 95 Block Panchayats (BPs), and 7,784 GPs, plus Rs. 1.84 crore in withheld portions for 216 GPs.
* **Rajasthan:** Rs. 315.61 crore released as the 2nd installment of untied grants for all 33 DPs, 352 BPs, and 3,857 GPs, plus Rs. 12.57 crore in withheld portions.
* **Meghalaya:** Rs. 27 crore released for three Autonomous District Councils (2nd installment untied for FY 2021â22) and Rs. 22.20 crore in tied grants for 816 Village Councils.
* **Maharashtra:** Multiple releases including withheld portions for FY 2024â25 and FY 2025â26, totaling hundreds of crores for tied and untied grants across various DPs, BPs, and GPs.
**Grant Utilization and Restrictions**
* **Untied Grants:** Must be used for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution; they cannot be used for salaries or establishment costs.
* **Tied Grants:** Restricted to basic services, specifically:
* Sanitation and maintenance of Open Defecation Free (ODF) status, including household waste, human excreta, and fecal sludge management.
* Supply of drinking water, rainwater harvesting, and water recycling.
**Administrative Framework**
* **Recommendation Process:** Grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation).
* **Release Mechanism:** The Ministry of Finance releases the allocated grants in two installments per financial year.
**Impact Analysis**
**State Governments (Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya)**
**Impact**
Recipients of significant federal funding aimed at rural infrastructure and local governance strengthening.
**Action Required**
Must ensure the timely distribution of funds to the respective rural local bodies and oversee the implementation of sanctioned projects.
**Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs)**
**Impact**
Directly empowered with financial resources to address local development needs and mandated basic services.
**Action Required**
Plan and execute projects according to the specific tied/untied categories while ensuring funds are not diverted for salaries or establishment costs.
**Rural Residents**
**Impact**
Benefit from improved local infrastructure, enhanced sanitation services, and better access to drinking water and waste management facilities.
**Action Required**
No specific action required under the document provisions.
Key Entities Referenced
Fifteenth Finance Commission (XV FC): The constitutional body whose recommendations govern the allocation of tied and untied grants to strengthen rural local governance.
Panchayati Raj Institutions (PRIs): The rural local bodies, including Gram, Block, and District Panchayats, which receive and utilize grants for grassroots development.
Eleventh Schedule of the Constitution: The constitutional framework that lists the twenty-nine subjects for which untied grants are utilized by local bodies for development.
Ministry of Panchayati Raj: The primary central ministry responsible for recommending the release of grants to states for rural local bodies.
Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram & Meghalaya: The six states specifically identified as beneficiaries of the over Rs. 1,500 crore grant release for financial years 2024-26.
Ministry of Panchayati Raj
Centre Releases Over Rs. 1,500 Crore as XV FC
Grants to Strengthen Rural Local Governance in
6 States
PRIs of Telangana, Rajasthan, Maharashtra, Uttarakhand,
Mizoram & Meghalaya to Benefit
Posted On: 31 MAR 2026 9:36AM by PIB Delhi
The Union Government has sanctioned and released the Fifteenth Finance Commission (XV FC) Tied and
Untied Grants during FY 2025â26 for Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in
Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram & Meghalaya. These grants will further
empower grassroots governance and enable need-based local development in PRIs.
For the state of Telangana, Rs.247.94 crore has been released as the 1st installment of untied grants of
the financial year 2025-26. These funds are for eligible 12600 Gram Panchayats (GPs) of the State.
Similarly, for the state of Uttarakhand, Rs. 91.31 crore has been released as 2nd installment of untied
grants of the financial year 2025-26, benefiting all 13 District Panchayats (DPs), 95 Block Panchayats
(BPs) and eligible 7784 GPs. Further, Rs.1.84 crores of withheld portion of 1st instalment of untied grants
for FY 2025-26 has also been released to additionally eligible 216 GPs.
For Rajasthan, Rs.315.61 crore has been released as 2nd installment of untied grants of the financial
year 2025-2026. These funds are for all 33 DPs, all 352 BPs and eligible 3857 GPs of the State. Further,
Rs.12.57 crores of withheld portion of 1st instalment of untied grants for FY 2025-26 has also been
released to additionally eligible 9 Zilla Panchayats and 13 BPs. Similarly, Meghalaya has received Rs.
27.00 crore as 2nd installment of untied grants of the financial year 2021-22. These funds are for all 3
eligible Autonomous District Councils (Khasi, Garo, Jaintia) of the State. Further, the Union Government
has released 2nd installment of tied grants to Meghalaya amounting to Rs.22.20 crore. These funds are
for all 816 eligible Village Councils including Autonomous District Council areas of the State.
For the State of Maharashtra, the Union Government has released Rs. 109.06 crore each as the withheld
portions of the 1st and 2nd instalments of XV Finance Commission (XV FC) Tied Grants for FY 2025â26,
benefiting an additional 12 eligible DPs and 125 BPs. In addition, Maharashtra has also received Rs.
116.97 crore as the withheld portion of the 1st instalment of XV FC Tied Grants for FY 2024â25, covering
an additional 12 DPs, 125 BPs and 27 GPs. While Rs. 329.21 crore has been released as the withheld
portion of the 2nd instalment of Tied Grants for FY 2024â25 to an additional 12 DPs, 125 BPs and 5,249
GPs. Further, Rs. 72.70 crore each has been released as the withheld portions of the 1st and 2nd
instalments of XV FC Untied Grants for FY 2025â26, benefiting the same set of 12 DPs and 125 BPs.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
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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