**Executive Summary**
This document details the utilization of funds allocated by the Fifteenth Finance Commission (FFC) to Panchayati Raj Institutions (PRIs) through the States. The FFC grants are divided into tied and untied components, with specific guidelines for their use. The information was provided in a written reply in Lok Sabha on March 10, 2026.
**Key Points / Main Content**
* **FFC Grants Components:**
* **Untied Grant:** Constitutes 40% of the total grant.
* **Tied Grant:** Constitutes 60% of the total grant.
* **Utilization of Untied Grant:**
* Can be used by Rural Local Bodies (RLBs) for location-specific felt needs.
* Must be within the 29 subjects listed in the Eleventh Schedule of the Constitution.
* Excludes salary or other establishment expenditure.
* **Utilization of Tied Grant:**
* Can be used for providing basic services.
* Category (a): Sanitation and maintenance of Open Defecation Free (ODF) status, including waste management (household, human excreta, faecal sludge).
* Category (b): Supply of drinking water, rainwater harvesting, and water recycling.
* **Fund Reallocation:**
* If a local body has fully met the needs of one category (sanitation or water supply), it can utilize funds for the other category.
* **Reporting and Data:**
* State-wise allocation, release, and utilization data for the FFC grants are provided.
* Utilization figures are reported by RLBs on the eGramSwaraj Portal.
**Impact Analysis**
**Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs)**
* **Impact:** PRIs receive devolved funds from the FFC for development and service delivery. The guidelines dictate how these funds can be utilized for specific purposes like sanitation, water supply, and other local needs.
* **Action Required:** PRIs must adhere to the stipulated guidelines for the utilization of tied and untied grants. They are also required to report their utilization on the eGramSwaraj Portal.
**States**
* **Impact:** States act as the conduit for the release of FFC grants to PRIs. They are involved in the allocation and monitoring of these funds.
* **Action Required:** States need to facilitate the allocation and release of FFC grants to their respective PRIs and ensure compliance with the utilization guidelines.
**Union Minister (Shri Rajiv Ranjan Singh alias Lalan Singh)**
* **Impact:** The Union Minister is responsible for disseminating information regarding the utilization of these funds.
* **Action Required:** The Minister has provided the information in a written reply in Lok Sabha.
Key Entities Referenced
Fifteenth Finance Commission (FFC): The source of the devolved funds allocated to Panchayati Raj Institutions (PRIs).
Panchayati Raj Institutions (PRIs): The recipients of the funds for utilization.
Eleventh Schedule of the Constitution: Specifies the 29 subjects for which untied grants can be utilized by RLBs.
Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh: The individual who provided the information about fund utilization.
eGramSwaraj Portal: The platform where the utilization of funds by RLBs is reported.
Ministry of Panchayati Raj
UTILISATION OF FUNDS BY PANCHAYATI RAJ
INSTITUTIONS
Posted On: 10 MAR 2026 3:55PM by PIB Delhi
The Central Finance Commission’s devolved funds are allocated, presently under the Fifteenth Finance
Commission (FFC), for the Panchayati Raj Institutions (PRIs) through the States. The FFC Grants have
two components—Tied and Untied.
The untied grant, which is 40% of the total grant, can be used by RLBs for their location-specific felt
needs under the 29 subjects enshrined in the Eleventh Schedule of the Constitution, except for salary or
other establishment expenditure. The tied grant, which is 60% of total grants, can be used for providing
basic services of (a) sanitation and maintenance of Open Defecation Free (ODF) status, which includes
management and treatment of household waste, human excreta and faecal 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 other category.
A state-wise statement indicating allocation, release and utilization of funds under the FFC grants is at
Annexure.
Annexure
State-wise Allocation, Release and Utilization of Funds to/by Rural Local Bodies under the Fifteenth
Finance Commission
(Rs. in crore)
State Allocation Release Utilization
(as on 05.03.2026) (as on 05.03.2026)
Andhra Pradesh 12,856.00 12,680.82 6,404.17
Arunachal Pradesh 1,131.00 436.40 295.26
Assam 7,857.00 7,108.76 3,724.85
Bihar 24,579.00 23,339.65 17,068.30
Chhattisgarh 7,123.00 6,514.69 6,903.87
Goa 368.00 214.59 77.72Gujarat 15,650.00 14,367.68 11,248.14
Haryana 6,193.00 5,820.35 4,377.36
Himachal Pradesh 2,102.00 1,983.57 1,632.74
Jharkhand 8,274.00 6,500.94 5,344.92
Karnataka 15,756.00 11,905.89 11,053.51
Kerala 7,972.00 7,321.50 4,093.90
Madhya Pradesh 19,511.00 16,059.99 13,405.33
Maharashtra 28,540.00 23,097.05 19,411.29
Manipur 867.00 242.50 96.95
Meghalaya 893.00 276.50 14.70
Mizoram 455.00 395.80 371.84
Nagaland 611.00 265.00 0.00
Odisha 11,058.00 10,965.89 8,054.71
Punjab 6,798.00 5,884.22 6,221.17
Rajasthan 18,915.00 16,442.90 13,015.47
Sikkim 207.00 194.63 138.37
Tamil Nadu 17,666.00 15,419.93 12,125.58
Telangana 9,048.00 6,697.07 2,669.31
Tripura 937.00 936.31 963.83
Uttar Pradesh 47,764.00 45,408.38 42,968.96
Uttarakhand 2,813.00 2,435.74 1,837.90
West Bengal 21,611.00 20,320.85 18,865.21Total 297,555.00 263,237.61 212,385.33
*Includes interim award of the FFC for the year 2020-21
Note: The utilisation is as reported by the RLBs on eGramSwaraj Portal.
This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written
reply in Lok Sabha on 10th March 2026.
***
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