**Executive Summary**
This document presents the Ministry of Panchayati Raj's response to a parliamentary question regarding the 15th Finance Commission grants released to Gram Panchayats in Bihar for the financial years 2023-24 and 2024-25. It details the amounts released by the Central Government to the State and by the State Government to the Gram Panchayats, and specifies the areas where the tied grants can be utilized. The document also touches on monitoring mechanisms and notes that recommendations of the 16th Finance Commission have not been laid in Parliament.
**Key Points / Main Content**
* **Grant Allocations:**
* The Ministry of Finance releases both tied and untied grants to the States based on the recommendations of the Ministry of Panchayati Raj and the Ministry of Jal Shakti.
* Inter-se-distribution among Panchayat tiers is managed by the State Governments based on the latest State Finance Commission (SFC) recommendations and in conformity with the bands prescribed by the 15th Finance Commission.
* **Grant Amounts Released to Bihar:** (Rs. in crore)
* **By Central Government:**
* 2023-24: Untied - 1542.13, Tied - 2313.20, Total - 3855.33
* 2024-25: Untied - 1643.60, Tied - 2465.41, Total - 4109.01
* **By State Government to GPs:**
* 2023-24: Untied - 1078.67, Tied - 1618.02, Total - 2696.69
* 2024-25: Untied - 1151.80, Tied - 1727.70, Total - 2879.50
* **By State Government to Jamui GPs:**
* 2023-24: Untied - 43.26, Tied - 63.60, Total - 106.86
* 2024-25: Untied - 20.79, Tied - 29.03, Total - 49.82
* **Utilization of Tied Grants:**
* 60% of total grants are "tied" grants.
* Can be used for sanitation and maintenance of ODF status (including waste management and fecal sludge treatment), and supply of drinking water, rainwater harvesting and water recycling.
* If one category's needs are fully saturated, funds can be used for the other category.
* **Monitoring Mechanisms:**
* The eGramSwaraj web portal (https://egramswaraj.gov.in) integrates all financial functions of Panchayats and displays progress data for concurrent monitoring.
* Reverse Receipt Report function monitors the transfer of grants from States to Rural Local Bodies.
* eGramSwaraj is integrated with the Public Financial Management System (PFMS) for digital payments.
* The Audit-Online application facilitates online auditing of Panchayat accounts.
* **16th Finance Commission:**
* Recommendations have not been laid in Parliament.
**Impact Analysis**
**Stakeholder: Gram Panchayats (GPs) in Bihar**
* **Impact:** The GPs in Bihar receive financial grants from the central government through the State Government, which can be used for specific purposes such as sanitation and water supply.
* **Action Required:** Ensure the effective utilization of tied grants in accordance with the operational guidelines, monitor financial activities using eGramSwaraj, and ensure transparent utilization of funds by using Audit-Online application.
**Stakeholder: State Government of Bihar**
* **Impact:** Responsible for inter-se-distribution of funds among Panchayat tiers based on SFC recommendations.
* **Action Required:** Distribute funds as per SFC recommendations, ensure timely disbursal to GPs, monitor the utilization of funds by GPs, and oversee the process through the eGramSwaraj portal.
**Stakeholder: Ministry of Panchayati Raj**
* **Impact:** Responsible for making recommendations on fund releases and ensuring transparency.
* **Action Required:** Monitor the performance and compliance of GPs and state government through data on the eGramSwaraj portal.
**Stakeholder: Ministry of Finance**
* **Impact:** Responsible for releasing grants to the states.
* **Action Required:** Release funds as per the guidelines set out by the Finance Commission.
Key Entities Referenced
15th Finance Commission: Commission whose grants to Rural Local Bodies are being discussed.
Ministry of Panchayati Raj: The ministry responsible for answering the question and implementing policies related to Panchayati Raj institutions.
Gram Panchayats: Local self-government organizations at the village or small town level, receiving grants under the Finance Commission.
Bihar: The state for which the finance commission grants are being discussed.
eGramSwaraj: Web portal managed by the Ministry for oversight and monitoring of Central Finance Commission grants.
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATI RAJ
LOK SABHA
UNSTARREDQUESTION NO. 1534
ANSWEREDON 09.12.2025
FINANCE COMMISSIONGRANTS RELEASED TO GRAM PANCHAYATS
1534.SHRIARUN BHARTI:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) The total 15th Finance Commission grants (both tied and untied) released to
GramPanchayats(GPs) inBihar during the last two financialyears2023-25;
(b) The totalamountallocated tothe GPswithin the Jamui LokSabha constituency;
(c) the key areas (e.g., drinking water, sanitation, street lights) where tied grants have
beenutilisedby Panchayats inJamui;
(d) the monitoring mechanism to ensure timely disbursal andproper utilisation of these funds
bythe StateGovernment andGPs; and
(e) the recommendations of the 16th Finance Commission regarding future fund flow and
greaterautonomyfor Panchayats?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a) As per Operational Guidelines issued by the Ministry of Finance dated 14.07.2021 for
implementation of the recommendation of the 15th Finance Commission grants to Rural
Local Bodies (RLBs), untied and tied grants are being released by the Ministry of Finance
to the Statesbased on recommendationsof the Ministry of PanchayatiRaj & the Ministry of
Jal Shakti, respectively. Thereafter, the inter-se-distribution among all the tiers of
Panchayats shall be done by the concerned State Government on the basis of accepted
recommendations of the latest State Finance Commission (SFC) and in conformity with the
bandsprescribed by the 15thFinanceCommission.
The details of 15thFinance Commission Grants (both tied and untied) released to the
Stateof Bihar for the Rural LocalBodies(RLBs) during the last two financial years, i.e.2023
-24and2024-25, are asunder:
(Rs. In crore)
Sl.No. Year UntiedGrant Tied Grant Total
Amountreleased Amountreleased Amountreleased
1 2023-24 1542.13 2313.20 3855.33
2 2024-25 1643.60 2465.41 4109.01
1As perthe informationprovidedbythe StateGovernment,the total15thFinance Commission
grants (both tied and untied) released to Gram Panchayats (GPs) in Bihar during the last two
financialyears2023-25 isfollows:
Released byStateGovt to GPs(₹ incrore)
FY Untied Tied Total
FY2023-24 1078.67 1618.02 2696.69
FY204-25 1151.80 1727.70 2879.50
(b) and (c):The Lok Sabha constituency-wise allocation, release & utilisation data are not
maintained in the Ministry of Panchayati Raj. However, as per the information provided by
the State Government, the total amount allocated to the Gram Panchayats within the Jamui
LokSabhaConstituency isasfollows:
Released byStateGovt to Jamui GPs(₹ incrore)
FY Untied Tied Total
FY2023-24 43.26 63.60 106.86
FY204-25 20.79 29.03 49.82
As per operational guidelines for implementation of the recommendation of the 15thFinance
Commission grantstoRural Local Bodies(RLBs), the tiedgrants(60% of totalgrants) canbe
used for the basic services of (a) sanitation and maintenance of ODF status, and this includes
management and treatment of household waste, and human excreta and fecal sludge
management and (b) supply of drinking water, rainwater harvesting and water recycling. If
any local body has fully saturated the needs of one category, it can utilise the funds for the
othercategory.
(d): With the objective to improve oversight andmonitoring and to ensure transparency
and accountability in the disbursal and utilisation of Central Finance Commission grants by
Panchayati Raj Institutions in the States, the Ministry manages the eGramSwarajwebportal
(https://egramswaraj.gov.in) since April 2020, which integrates all financial functions of
Panchayats—from planning to payment. The progress data obtained from this system is
displayed onthe portal,available inthe public domain,for concurrentmonitoring at the State,
District, and Block levels. The Reverse Receipt Report (Treasury–PFMS–eGS Integration)
function available on the portal provides the facility to oversee and monitor the details of the
transfer of grantsby the States tothe Rural LocalBodies.
The eGramSwarajis integrated with the Public Financial Management System
(PFMS) for the Panchayats (GPs), facilitating real-time digital payments to vendors and
service providers. Additionally, the Audit-Online application was launched in April 2020 to
enable online auditing of Panchayat accounts and their financial management. This tool
facilitates the transparent utilisation of Central Finance Commission funds and enhances
Panchayat-level financialoversight.
(e): Recommendations of the 16thCentral Finance Commission have not been laid in the
Parliament.
***
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