FINANCE COMMISSION GRANTS TO PANCHAYATI RAJ INSTITUTIONS

Ministry of Panchayati Raj FINANCE COMMISSION GRANTS TO PANCHAYATI RAJ INSTITUTIONS प्रव तथ: 22 JUL 2026 4:22PM by PIB Delhi State-wise details of the grants released under the 15th Finance Commission to the Rural Local Bodies in 28 states, including Andhra Pradesh, for the year 2021-26 are given at Annexure. Unreleased amount represents grants that could not be released during the award period due to non-fulfilment of the prescribed eligibility conditions by the concerned State Governments / Rural Local Bodies (RLBs). Once the recommendations of the Finance Commission, which is a constitutional body, are accepted by the Government and are laid before the Parliament, the same cannot be altered.

Panchayat, being “Local Self Government”, is a state subject. However, the Ministry of Panchayati Raj promotes decentralized planning and effective implementation of development works through the Gram Panchayat Development Plan (GPDP) framework. Gram Panchayats prepare and upload their GPDPs on the eGramSwaraj portal, which serves as a comprehensive digital platform for planning, budgeting, accounting, and monitoring of Panchayat activities. The preparation of GPDPs is undertaken annually through a participatory process involving Gram Sabhas, and the plans include works and activities to be implemented through the convergence of various Central and State schemes.

The status of the Gram Panchayats Development Plan (GPDP) in Andhra Pradesh that have uploaded on eGramSwaraj vis-à-vis the national average for the last three years is given below: - Financial All over India In Andhra Pradesh Year Total No. of GPs who Percentage Total No of No. of GPs Percentage No of have prepared GPs who have GPs and uploaded prepared and their PDPs uploaded their PDPs 2023-24 262251 255042 97.25% 13328 13305 99.83% 2024-25 262593 255638 97.35% 13328 13310 99.86% 2025-26 264407 255262 96.54% 13327 13320 99.95% Further, the status of eGramSwaraj-PFMS linked fund transfers in Andhra Pradesh vis-à-vis at the national

level for the last three years is as under: -Financial All over India In Andhra Pradesh Year Total No. No. of GPs Payment Total No. of No. of GPs Payment of GPs & & Approved GPs With Online Approved Equivalent Equivalent Payment (in Cr) (in Cr) with Online Payment 2023-24 256902 245041 34246.46 13328 13095 968.711 2024-25 256169 243217 37651.95 13328 13002 1636.12 2025-26 258725 245802 32762.52 13327 13041 1575.35 The Ministry of Panchayati Raj has already released a report titled “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024” in February 2025 only to assess the effectiveness of devolution and the role of local governments in strengthening grassroots democracy of the States/UTs.

This report presents the Devolution Index, which provides the overall scores and ranks for all States/Union Territories covered under Part-IX of the Constitution, based on six identified dimensions:

Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability. This report reveals that the extent of devolution has increased from 39.9% to 43.9% between the period 2013-14 to 2021-22.

Annexure State-wise details of allocation and release of the Fifteenth Finance Commission grants to the States for Rural Local Bodies for FY 2021-26. (Rs. in crore) Sl. No. States Allocation Release Not released* 1 Andhra Pradesh 10231.00 10055.82 175.18 2 Arunachal Pradesh 900.00 258.50 641.50 3 Assam 6253.00 6253.00 0.00 4 Bihar 19561.00 19527.34 33.66 5 Chhattisgarh 5669.00 5661.24 7.76 6 Goa 293.00 188.88 104.12 7 Gujarat 12455.00 12453.39 1.61 8 Haryana 4929.00 4856.54 72.469 Himachal Pradesh 1673.00 1671.40 1.60 10 Jharkhand 6585.00 5907.88 677.12 11 Karnataka 12539.00 8688.89 3850.11 12 Kerala 6344.00 6344.00 0.00 13 Madhya Pradesh 15527.00 15487.97 39.03 14 Maharashtra 22713.00 20292.04 2420.96 15 Manipur 690.00 65.50 624.50 16 Meghalaya 711.00 94.50 616.50 17 Mizoram 362.00 362.00 0.00 18 Nagaland 486.00 140.00 346.00 19 Odisha 8800.00 8796.11 3.89 20 Punjab 5410.00 5383.67 26.33 21 Rajasthan 15053.00 13391.31 1661.69 22 Sikkim 165.00 162.78 2.22 23 Tamil Nadu 14059.00 11812.93 2246.07 24 Telangana 7201.00 6110.45 1090.55 25 Tripura 746.00 746.00 0.00 26 Uttar Pradesh 38012.00 38012.00 0.00 27 Uttarakhand 2239.00 2228.06 10.94 28 West Bengal 17199.00 16930.14 268.86 Total 236805.00 221882.34 14922.66* Unreleased amount represents grants that could not be released during the award period due to non-fulfilment of the prescribed eligibility conditions by the concerned State Governments / Rural Local Bodies (RLBs) This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written reply in Rajya Sabha on 22nd July 2026.

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