Ministry of Panchayati Raj
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Union Government Disburses Over Rs. 1,440 Crores in XV-Finance Commission Grants to Boost Rural Development Across Five States


Madhya Pradesh, Gujarat, Punjab, Arunachal Pradesh and Nagaland Receive Substantial Untied Grants for Local Needs

Posted On: 03 APR 2025 4:54PM by PIB Delhi

The Union Government has disbursed the Fifteenth Finance Commission (XV-FC) grants to Rural Local Bodies (RLBs)/ Panchayati Raj Institutions (PRIs) in five States viz. Arunachal Pradesh, Gujarat, Madhya Pradesh, Nagaland and Punjab during the financial year 2024–25. These grants, allocated in two installments per financial year, are released by the Ministry of Finance based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation).

State-Wise Allocation:

  1. Madhya Pradesh – Rs.651.7794 crore (1st Installment, Untied Grants, FY 2024–25)
  • Funds allocated for 52 eligible District Panchayats, 309 eligible Block Panchayats, and 22,995 eligible Gram Panchayats.
  1. Gujarat – Rs.508.6011 crore (1st Installment, Untied Grants, FY 2024–25)
  • Funds allocated for 27 eligible District Panchayats, 242 eligible Block Panchayats, and 14,469 eligible Gram Panchayats.
  1. Punjab – Rs.225.975 crore (2nd Installment, Untied Grants, FY 2024–25)
  • Funds allocated for 22 eligible Zila Parishads, 149 eligible Block Panchayats, and 13,152 eligible Gram Panchayats.
  1. Arunachal Pradesh – Rs.35.40 crore (1st Installment, Untied Grants, FY 2022–23)
  • Funds designated for all eligible RLBs in the State.
  1. Nagaland – Rs.19.20 crore (1st Installment, Untied Grants, FY 2022–23)
  • Funds designated for all eligible RLBs in the State.

Utilization of Grants:

Untied Grants: These grants empower RLBs/PRIs to address location-specific needs under the 29 Subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied Grants: These funds must be utilized for:

(a) Sanitation and maintenance of ODF (Open Defecation Free) status, including household waste management, human excreta, and fecal sludge treatment.

(b) Drinking water supply, rainwater harvesting, and water recycling. 

The timely release of XV-FC grants reaffirms the Union Government’s commitment to strengthening local governance and ensuring effective service delivery in rural areas.

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Aditi Agrawal


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