On October 9, 2025, the Government of India released ₹680.71 crores as the first instalment of Untied (Basic) Grants under the Fifteenth Finance Commission (XV-FC) for Rural Local Bodies (RLBs)/ Panchayati Raj Institutions (PRIs) of West Bengal for the Financial Year 2025-26. This release, made on October 6, 2025, caters to 3,224 Gram Panchayats, 335 Block Panchayats, and 21 Zilla Parishads across the state.
During the financial year 2024–25 and the current financial year 2025–26, a total amount of ₹4,181.23 crores was released to West Bengal, with ₹2,082.13 crores as Untied Grants and ₹2,099.10 crores as Tied Grants.
A summary of amounts recommended and released to West Bengal during 2024-25 and 2025-26:
| Date of Sanction | Financial Year | Component | Amount Released (Rupees in crore) | Instalment | Remarks |
|---|---|---|---|---|---|
| 29.08.2024 | 2024-25 | Untied (Basic Grant) | 702.04 | 1st instalment | Worked on pro rata basis for eligible Gram Panchayats |
| 09.09.2024 | 2024-25 | Tied Grant | 1131.42 | 1st instalment | For sanitation and drinking water-related works |
| 24.02.2025 | 2024-25 | Untied (Basic Grant) | 699.38 | 2nd instalment | Includes release of withheld portion of the 1st instalment (₹ crore) |
| 25.02.2025 | 2024-25 | Tied Grant | 967.68 | 2nd instalment | Includes release of withheld portion of the 1st instalment (₹ crore) |
| 06.10.2025 | 2025-26 | Untied (Basic Grant) | 680.71 | 1st instalment | Worked on pro rata basis for eligible Gram Panchayats |
Untied Grants offer RLBs the flexibility to address location-specific development needs across the 29 Subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. These funds support road and footpath construction/maintenance, LED and solar street lighting, village playfields, environmental protection, income-generating activities, digital connectivity, crematorium maintenance, etc. Tied Grants are for essential services, including sanitation and maintenance of Open Defecation Free (ODF) status, supply of drinking water, rainwater harvesting, water recycling, stormwater drainage, and waterlogging management.
Release ID: 2176636
Aditi Agrawal
Key Entities Referenced
XV Finance Commission (XV-FC): The Fifteenth Finance Commission, responsible for recommending the distribution of funds between the Union and the States.
West Bengal: The state receiving grants under the XV Finance Commission's recommendations.
Rural Local Bodies (RLBs) / Panchayati Raj Institutions (PRIs): Local governing bodies at the village, block, and district levels in rural areas that receive funding.
Untied (Basic) Grants: Grants that provide Rural Local Bodies with the flexibility to address location-specific development needs.
Tied Grants: Grants dedicated to essential services, including sanitation and maintenance of Open Defecation Free (ODF) status, supply of drinking water, and rainwater harvesting.
Ministry of Panchayati Raj
Union Government Releases Over 680 Crores Under
XV Finance Commission to Strengthen PRIs in West
Bengal
Posted On: 09 OCT 2025 11:41AM by PIB Delhi
The Government of India has released an amount of ₹680.71 crores as the first instalment of Untied (Basic)
Grants under the Fifteenth Finance Commission (XV-FC) for Rural Local Bodies (RLBs) / Panchayati Raj
th
Institutions (PRIs) of the state of West Bengal for the Financial Year 2025–26. The release was made on 6
October 2025 in respect of the eligible 3,224 Gram Panchayats, 335 Block Panchayats and 21 Zilla Parishads
across the State.
During the previous financial year 2024–25 and current financial year 2025–26, a total amount of ₹4,181.23
crores was recommended and released to West Bengal, comprising ₹2,082.13 crores as Untied Grants and
₹2,099.10 crores as Tied Grants, underlining the Government of India’s continued commitment to
strengthening grassroots governance and service delivery through Panchayati Raj Institutions in the state.
Following amounts have been recommended and released to West Bengal during 2024–25 and 2025-26:
A m o u n t
Date of Sanction Financial Year Component R e l e a s e d Instalment Remarks
(Rupees in crore)
Untied (Basic Worked on pro-rata
29.08.2024 2024–25 702.04 1st instalment
Grant) basis for eligible RLBs
For sanitation and
09.09.2024 2024–25 Tied Grant 1131.42 1st instalment drinking water-related
works
Includes release of
Untied (Basic withheld portion of 1st
24.02.2025 2024–25 699.38 2nd instalment
Grant) instalment (₹4.93
crore)
Includes release of
withheld portion of 1st
25.02.2025 2024-25 Tied Grant 967.68 2nd instalment
instalment (₹7.40
crore)
Untied (Basic Worked on pro-rata
06.10.2025 2025-26 680.71 1st instalment
Grant) basis for eligible RLBs
Untied Grants from XV-FC provide RLBs with the flexibility to address location-specific development
needs across the 29 Subjects of the Eleventh Schedule of the Constitution, excluding salaries and
establishment costs. These funds support initiatives such as road and footpath construction and maintenance,
LED and solar street lighting, village playfields, environmental protection, income-generating activities,
digital connectivity, crematorium maintenance etc., aligned with the local priorities identified through
participatory planning. Tied Grants, on the other hand, are dedicated to essential services, including
sanitation and maintenance of Open Defecation Free (ODF) status, supply of drinking water, rainwaterharvesting, water recycling, stormwater drainage, waterlogging management etc.
***
Aditi Agrawal
(Release ID: 2176636)