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GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATI RAJ
RAJYASABHA
UNSTARREDQUESTION NO. 570
ANSWEREDON 04.02.2026
Devolutionof fundsto Local Self Governments(LSGs)
570DR. V.SIVADASAN:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) the State-wise/UT-wise details of revenue devolved to Local Self Governments (LSGs),
includingpanchayats andurbanlocalbodies, during the last five years, specifying the amount
transferred as well as the percentage of each State/UTtotal own revenue represented by such
devolutionannually;
(b) the criteria adopted by each State/UT Government for revenue sharing with LSGs,
including whether these are based on recommendations of the State Finance Commission or
anyotherstatutory mechanism; and
(c) whether Government has assessed inter-State/UT variations in the proportion of revenue
devolvedtoLSGsandif so, the findingsand steps takentoaddress the issue?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a): The Constitution of India, under Articles 280(3)(bb) and 280(3)(c), mandates the
Finance Commission to recommend grants from the Consolidated Fund of India to the States
to supplement the resources of Panchayats (all three tiers) and Municipalities. The Central
Finance Commission grants are not recommended for the UTs and grants are devolved to
them as per recommendation of the Finance Commission duly constituted from time to time
onlyfor the UTs.
In accordance with its constitutional mandate, the 15th Finance Commission, has
recommended a totalgrant of Rs.60,750 crores andRs. 29,250croresfor the interim periodfor
FY 2020-21 and Rs. 2,36,805 crores and Rs. 1,21,055 crores for the period 2021-26 for
duly constituted Rural Local Bodies and for Urban Local Bodies respectively. The
15thFinance Commissionhas also recommended a total grant of Rs. 70,051 crores to Local
Self Governments to strengthen and plug the critical gaps in the health care system at the
primary health care level. As per information available with this Ministry, the State-wise
detailsof allocations andreleasesof grantsunderthe FifteenthFinance Commission (XVFC)
to Rural Local Bodies/Panchayati Raj Institutions, during the last five years, are given at
Annexure.
1(b) & (c): In respect of Rural Local Bodies/Panchayati Raj Institutions, the criteria for fund
allocation determined bythe 15thFinance Commission involve inter-se distribution among the
States,with a weightage of 90percentassigned topopulationand10 percenttothe area of the
States. The inter-se distribution among all the tiers is done by the State Governments on the
basis of the accepted recommendations of the latest State Finance Commission (SFC) and in
conformitywith the following bandsfixed bythe 15thFinanceCommission:
Range for distribution Gram Panchayats BlockPanchayats District Panchayats
Minimum 70% 10% 5%
Maximum 85% 25% 15%
States which have a two-tier system with only village and district panchayats, the
allocationisasbelow:
Range for distribution Gram Panchayats District Panchayats
Minimum 70% 15%
Maximum 85% 30%
In the event of SFC recommendations not being available, the inter-se distribution
within the tiers should be decided by the State Government within the bandsindicated above.
The intra-tier distribution among the relevant entities across the State should be on the basis
of population and area in the ratio of 90:10 or as per the accepted recommendation of the
latest SFC.
In respect of Municipalities/Urban Local Bodies also, the criteria for fund allocation
determined by the 15thCentral Finance Commission involve inter-se distribution among the
States, with a weightage of 90 percent assigned to population and 10 percent to the areas of
the States.
*****
2Annexure
(Annexure referredtoinreplytoparts (a)of the Rajya SabhaUnstarred Question No. 570 answered on04.02.2026)
The details of allocations and releases of grants under the Fifteenth Finance Commission (XV FC) to Rural Local Bodies/Panchayati Raj
Institutions during the last five years, State-wise.
(Rs. incrore)
Sl. States 2020-21 2021-22 2022-23 2023-24 2024-25
No.
Allocation Release Allocation Release Allocation Release Allocation Release Allocation Release
1 Andhra Pradesh 2625.00 2625.00 1939.00 1917.85 2010.00 1976.75 2031.00 1997.45 2152.00 2109.97
2 Arunachal 231.00 231.00 170.00 170.00 177.00 35.40 179.00 0.00 189.00 0.00
Pradesh
3 Assam 1604.00 1604.00 1186.00 1186.00 1228.00 1228.00 1241.00 1241.00 1315.00 1315.00
4 Bihar 5018.00 5018.00 3709.00 3709.00 3842.00 3842.00 3884.00 3855.33 4114.00 4109.01
5 Chhattisgarh 1454.00 1454.00 1075.00 1075.00 1114.00 1114.00 1125.00 1125.00 1192.00 1185.25
6 Goa 75.00 75.00 55.00 55.00 57.00 48.46 58.00 21.55 62.00 0.00
7 Gujarat 3195.00 3195.00 2362.00 2362.00 2446.00 2446.00 2473.00 2473.00 2619.00 2614.19
8 Haryana 1264.00 1264.00 935.00 935.00 968.00 967.30 979.00 953.59 1036.00 1012.51
9 Himachal 429.00 429.00 317.00 317.00 329.00 329.00 332.00 318.04 352.00 352.00
Pradesh
10 Jharkhand 1689.00 1689.00 1249.00 1249.00 1293.00 1293.00 1307.00 1307.00 1385.00 275.13
311 Karnataka 3217.00 3217.00 2377.00 2375.50 2463.00 2093.55 2490.00 2086.59 2637.00 2133.25
12 Kerala 1628.00 1628.00 1203.00 1203.00 1246.00 1246.00 1260.00 1260.00 1334.00 1334.00
13 Madhya Pradesh 3984.00 3984.00 2944.00 2944.00 3050.00 3050.00 3083.00 2819.24 3265.00 1629.45
14 Maharashtra 5827.00 5827.00 4307.00 4267.16 4461.00 3696.71 4510.00 3629.21 4776.00 3169.72
15 Manipur 177.00 177.00 131.00 65.50 135.00 0.00 137.00 0.00 145.00 0.00
16 Meghalaya 182.00 182.00 135.00 67.50 140.00 0.00 141.00 0.00 149.00 0.00
17 Mizoram 93.00 93.00 69.00 69.00 71.00 71.00 72.00 72.00 76.00 53.20
18 Nagaland 125.00 125.00 92.00 92.00 96.00 48.00 97.00 0.00 102.00 0.00
19 Odisha 2258.00 2258.00 1669.00 1669.00 1728.00 1728.00 1747.00 1746.91 1851.00 1851.00
20 Punjab 1388.00 1388.00 1026.00 1026.00 1062.00 1062.00 1074.00 1058.35 1138.00 788.90
21 Rajasthan 3862.00 3862.00 2854.00 2854.00 2957.00 2955.34 2989.00 2847.96 3166.00 3166.00
22 Sikkim 42.00 42.00 31.00 31.00 33.00 33.00 33.00 33.00 35.00 32.52
23 Tamil Nadu 3607.00 3607.00 2666.00 2666.00 2761.00 2761.00 2791.00 2791.00 2957.00 2957.00
24 Telangana 1847.00 1847.00 1365.00 1365.00 1415.00 1415.00 1430.00 1424.18 1514.00 0.00
25 Tripura 191.00 191.00 141.00 141.00 147.00 147.00 148.00 148.00 157.00 156.31
26 Uttar Pradesh 9752.00 9752.00 7208.00 7208.00 7466.00 7466.00 7547.00 7547.00 7994.00 7994.00
27 Uttarakhand 574.00 574.00 425.00 418.70 440.00 439.21 445.00 444.13 471.00 470.30
28 West Bengal 4412.00 4412.00 3261.00 3261.00 3378.00 3378.00 3415.00 3415.00 3617.00 3472.22
4