The Constitution of India, under Articles 280(3)(bb) and 280(3)(c), mandates the Finance Commission to recommend grants from the Consolidated Fund of India to the States to supplement the resources of Panchayats (all three tiers) and Municipalities. The Central Finance Commission grants are not recommended for the UTs and grants are devolved to them as per recommendation of the Finance Commission duly constituted from time to time only for the UTs. 

In accordance with its constitutional mandate, the 15th Finance Commission, has recommended a total grant of Rs.60,750 crores and Rs. 29,250croresfor the interim period for FY 2020-21 and Rs. 2,36,805 crores and  Rs. 1,21,055 crores for the period 2021-26 for duly constituted Rural Local Bodies and for Urban Local Bodies respectively. The 15^thFinance Commissionhas also recommended a total grant of Rs. 70,051 crores to Local Self Governments to strengthen and plug the critical gaps in the health care system at the primary health care level. As per information available with this Ministry, the State-wise details of allocations and releases of grants under the Fifteenth Finance Commission (XV FC) to Rural Local Bodies/Panchayati Raj Institutions, during the last five years, are given at Annexure.

In respect of  Rural Local Bodies/Panchayati Raj Institutions, the criteria for fund allocation determined by the 15^thFinance Commission involve inter-se distribution among the States, with a weightage of 90 percent assigned to population and 10 percent to the area of the States. The inter-se distribution among all the tiers is done by the State Governments on the basis of the accepted recommendations of the latest State Finance Commission (SFC) and in conformity with the following bands fixed by the 15th Finance Commission:

 

 

 

States which have a two-tier system with only village and district panchayats, the allocation is as below:

 

 

In the event of SFC recommendations not being available, the inter-se distribution within the tiers should be decided by the State Government within the bands indicated above. The intra-tier distribution among the relevant entities across the State should be on the basis of population and area in the ratio of 90:10 or as per the accepted recommendation of the latest SFC.

 

In respect of Municipalities/Urban Local Bodies also, the criteria for fund allocation determined by the 15^thCentral Finance Commission involve inter-se distribution among the States, with a weightage of 90 percent assigned to population and 10 percent to the areas of the States.

 

 

Annexure

 

The details of allocations and releases of grants under the Fifteenth Finance Commission (XV FC) to Rural Local Bodies/Panchayati Raj Institutions during the last five years, State-wise.

(Rs. in crore)

Sl. No.	States	2020-21		2021-22		2022-23		2023-24		2024-25
		Allocation	Release	Allocation	Release	Allocation	Release	Allocation	Release	Allocation	Release
1	Andhra Pradesh	2625.00	2625.00	1939.00	1917.85	2010.00	1976.75	2031.00	1997.45	2152.00	2109.97
2	Arunachal Pradesh	231.00	231.00	170.00	170.00	177.00	35.40	179.00	0.00	189.00	0.00
3	Assam	1604.00	1604.00	1186.00	1186.00	1228.00	1228.00	1241.00	1241.00	1315.00	1315.00
4	Bihar	5018.00	5018.00	3709.00	3709.00	3842.00	3842.00	3884.00	3855.33	4114.00	4109.01
5	Chhattisgarh	1454.00	1454.00	1075.00	1075.00	1114.00	1114.00	1125.00	1125.00	1192.00	1185.25
6	Goa	75.00	75.00	55.00	55.00	57.00	48.46	58.00	21.55	62.00	0.00
7	Gujarat	3195.00	3195.00	2362.00	2362.00	2446.00	2446.00	2473.00	2473.00	2619.00	2614.19
8	Haryana	1264.00	1264.00	935.00	935.00	968.00	967.30	979.00	953.59	1036.00	1012.51
9	Himachal Pradesh	429.00	429.00	317.00	317.00	329.00	329.00	332.00	318.04	352.00	352.00
10	Jharkhand	1689.00	1689.00	1249.00	1249.00	1293.00	1293.00	1307.00	1307.00	1385.00	275.13
11	Karnataka	3217.00	3217.00	2377.00	2375.50	2463.00	2093.55	2490.00	2086.59	2637.00	2133.25
12	Kerala	1628.00	1628.00	1203.00	1203.00	1246.00	1246.00	1260.00	1260.00	1334.00	1334.00
13	Madhya Pradesh	3984.00	3984.00	2944.00	2944.00	3050.00	3050.00	3083.00	2819.24	3265.00	1629.45
14	Maharashtra	5827.00	5827.00	4307.00	4267.16	4461.00	3696.71	4510.00	3629.21	4776.00	3169.72
15	Manipur	177.00	177.00	131.00	65.50	135.00	0.00	137.00	0.00	145.00	0.00
16	Meghalaya	182.00	182.00	135.00	67.50	140.00	0.00	141.00	0.00	149.00	0.00
17	Mizoram	93.00	93.00	69.00	69.00	71.00	71.00	72.00	72.00	76.00	53.20
18	Nagaland	125.00	125.00	92.00	92.00	96.00	48.00	97.00	0.00	102.00	0.00
19	Odisha	2258.00	2258.00	1669.00	1669.00	1728.00	1728.00	1747.00	1746.91	1851.00	1851.00
20	Punjab	1388.00	1388.00	1026.00	1026.00	1062.00	1062.00	1074.00	1058.35	1138.00	788.90
21	Rajasthan	3862.00	3862.00	2854.00	2854.00	2957.00	2955.34	2989.00	2847.96	3166.00	3166.00
22	Sikkim	42.00	42.00	31.00	31.00	33.00	33.00	33.00	33.00	35.00	32.52
23	Tamil Nadu	3607.00	3607.00	2666.00	2666.00	2761.00	2761.00	2791.00	2791.00	2957.00	2957.00
24	Telangana	1847.00	1847.00	1365.00	1365.00	1415.00	1415.00	1430.00	1424.18	1514.00	0.00
25	Tripura	191.00	191.00	141.00	141.00	147.00	147.00	148.00	148.00	157.00	156.31
26	Uttar Pradesh	9752.00	9752.00	7208.00	7208.00	7466.00	7466.00	7547.00	7547.00	7994.00	7994.00
27	Uttarakhand	574.00	574.00	425.00	418.70	440.00	439.21	445.00	444.13	471.00	470.30
28	West Bengal	4412.00	4412.00	3261.00	3261.00	3378.00	3378.00	3415.00	3415.00	3617.00	3472.22

 

This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written reply in Rajya Sabha on 04th February 2026.

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