During the financial year 2025–26 for Rural Local Bodies in Mizoram, the Union Government has released the second installment of Untied Grants amounting to ₹14.40 crores under the Fifteenth Finance Commission (XV FC) along with the withheld amount of the first installment of Untied Grants amounting to ₹0.1209 crores for FY 2023–24. These grants will benefit all 808 eligible Village Councils in the State. Earlier in August 2025, Mizoram had received Rs.14.2761 crores for 827 eligible Village Councils as part of the 2023–24 grants.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV FC Grants for RLBs/PRIs, which is subsequently released by the Ministry of Finance in two installments during a financial year. Untied Grants are meant to be utilized by Rural Local Bodies/PRIs for location-specific felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, except for salaries and other establishment expenditures. Tied Grants, on the other hand, are earmarked for basic services relating to (a) sanitation and maintenance of ODF status including management and treatment of household waste, human excreta and fecal sludge, and (b) supply of drinking water, rainwater harvesting, and water recycling.

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Aditi Agrawal