**Executive Summary**
The Union Government released over Rs. 592 crores in Fifteenth Finance Commission (XV FC) grants on March 27, 2026, to support Rural Local Bodies in Maharashtra and Goa. These funds include withheld untied and tied grant installments for FY 2023â24 and FY 2024â25, as well as new tranches for FY 2025â26. The release aims to strengthen Panchayati Raj Institutions (PRIs) by funding essential services and local infrastructure needs.
**Key Points / Main Content**
* **Maharashtra Grant Releases**
* **FY 2024â25 Untied Grants:** Rs. 79.82 crores (withheld 1st installment) and Rs. 221.82 crores (withheld 2nd installment) released to eligible District Panchayats (DPs), Block Panchayats (BPs), and Gram Panchayats (GPs).
* **FY 2023â24 Tied Grants:** Rs. 159.32 crores (withheld 1st installment) and Rs. 118.69 crores (withheld 2nd installment) released to thousands of eligible PRIs.
* **Goa Grant Releases**
* **FY 2024â25 Untied Grants:** Rs. 12.40 crores released as the 1st installment, covering 2 District Panchayats and all 191 Gram Panchayats in the state.
* **Permitted Use of Funds**
* **Untied Grants:** To be utilized for location-specific needs under the 29 subjects of the Eleventh Schedule, excluding salaries and establishment costs.
* **Tied Grants:** Dedicated to basic services, specifically sanitation (ODF status maintenance, waste management, and fecal sludge treatment) and water supply (drinking water, rainwater harvesting, and recycling).
* **Administrative Procedure**
* Grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, then released by the Ministry of Finance.
* Funds are disbursed in two installments per financial year.
**Impact Analysis**
**Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs)**
**Impact**
These bodies receive critical funding to address local infrastructure gaps and maintain public health standards. The release of withheld portions ensures that previously planned projects can proceed.
**Action Required**
PRIs must ensure funds are allocated according to the specific mandates of tied and untied categories, ensuring no funds are spent on salaries or establishment costs.
**Ministry of Panchayati Raj and Ministry of Jal Shakti**
**Impact**
These ministries act as the recommending authorities for the release of XV-FC grants, ensuring state-level compliance with central guidelines.
**Action Required**
They must continue to evaluate the eligibility of local bodies and recommend the release of subsequent installments based on departmental standards for sanitation and water management.
**Ministry of Finance**
**Impact**
Responsible for the actual disbursement of the sanctioned tranches to the state governments of Goa and Maharashtra.
**Action Required**
Execute the financial transfer of the sanctioned Rs. 592+ crores to the respective state accounts for further distribution to local bodies.
Key Entities Referenced
Fifteenth Finance Commission (XV FC): The constitutional body whose recommendations govern the allocation and release of grants to Rural Local Bodies.
Panchayati Raj Institutions (PRIs): The three-tier rural local government system (Gram, Block, and District Panchayats) responsible for implementing local development projects.
Goa and Maharashtra: The specific Indian states targeted for the release of the current tranche of untied and tied grants.
Eleventh Schedule of the Constitution: The constitutional framework listing twenty-nine subjects for which untied grants can be utilized by local bodies for specific needs.
Ministry of Panchayati Raj: The primary central ministry responsible for recommending the release of grants to strengthen rural local governance.
Ministry of Panchayati Raj
Goa and Maharashtra Receive Over Rs. 592
Crores as XV Finance Commission Grants for
Strengthening PRIs
Posted On: 27 MAR 2026 3:18PM by PIB Delhi
The Union Government has sanctioned and released the Fifteenth Finance Commission (XV FC) Untied
Grants during FY 2025â26 to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Goa and
Maharashtra. Under this tranche, for Maharashtra, the withheld portion of the 1st instalment of XV FC
Untied Grants for FY 2024â25, amounting to Rs. 79.82 crores, has been released for 12 eligible District
Panchayats (DPs), 125 eligible Block Panchayats (BPs) and 27 eligible Gram Panchayats (GPs). Further,
Rs. 221.82 crores, representing the withheld portion of the 2nd instalment of Untied Grants for FY 2024â
25, has also been released to additionally 12 DPs, 125 BPs and 5249 GPs in the State. The Union
Government has also released tied grants for Maharashtra for FY 2023â24. This includes the withheld
portion of the 1st instalment of XV Finance Commission (XV FC) grants, amounting to Rs. 159.32 crores,
for additionally 12 eligible DPs, 125 eligible BPs and 1120 eligible GPs. Further, Rs. 118.69 crores, being
the withheld portion of the 2nd instalment, has also been released to additionally eligible 12 DPs, 125 BPs
and 183 GPs. While for Goa, the 1st instalment of Untied Grants for FY 2024â25, amounting to Rs. 12.40
crores have been released, covering 2 eligible District Panchayats (DPs) and all 191 eligible Gram
Panchayats (GPs) in 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 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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