The Union Government has released Fifteenth Finance Commission (XV-FC) Tied and Untied grants during Financial Year 2025-26 for Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana and Uttarakhand. The releases cover regular installments as well as withheld portions pertaining to various financial years. The total amount released aggregates to Rs.1,536.14 crores, aimed at further strengthening rural local governance across these States.

 

State-wise Details of XV Finance Commission (Tied and Untied) Grants Released during FY 2025-26:

 

Sl. No.	Name of State	Grant Component	Amount (Rs. in Crore)	Installment / Year	Eligible Panchayats of the State
1.	Arunachal Pradesh	Tied	53.10	1st Installment for FY 2022-23	All 25 eligible DPs and all 2108 eligible GPs
2.	Goa	Tied	18.27	1st Installment for FY 2024-25	All 2 eligible DPs and 187 eligible GPs
3.	Gujarat	Untied	2.98	Withheld portion of 1st and 2nd Installments for FY 2025-26	Additionally 1 eligible BP, 21 eligible GPs and all 23 newly constituted GPs (for both installments)
		Tied	4.47	Withheld portion of 1st and 2nd Installments for FY 2025-26	Additionally 1 eligible BP, 21 eligible GPs and all 23 newly constituted GPs (for both installments)
4.	Jharkhand	Tied	405.23	1st Installment for FY 2025-26	All 24 eligible DPs, all 264 eligible BPs and 4344 eligible GPs
		Tied	2.67	Withheld portion of 1st Installment for FY 2024-25	Additionally 11 eligible BPs and 1 eligible GP
		Tied	2.67	Withheld portion of 2nd Installment for FY 2024-25	Additionally 11 eligible BPs and 1 eligible GP
5.	Odisha	Tied	53.13	Withheld portion of 1st and 2nd Installments for FY 2025-26	Additionally 10 eligible DPs, 17 eligible BPs and 40 eligible GPs (for both installments) and 15 eligible GPs (for 2nd installment only)
6.	Rajasthan	Tied	466.79	2nd Installment for FY 2025-26	32 eligible DPs, 347 eligible BPs and 3857 eligible GPs
		Tied	15.44	Withheld portion of 1st Installment for FY 2025-26	Additionally 8 eligible ZPs and 8 eligible BPs
7.	Telangana	Tied	371.91	1st Installment for FY 2025-26	12600 eligible GPs
8.	Uttarakhand	Tied	136.58	2nd Installment for FY 2025-26	All 13 eligible DPs, 94 eligible BPs and 7766 eligible GPs
		Tied	2.90	Withheld portion of 1st Installment for FY 2025-26	Additionally 2 eligible BPs and 198 eligible GPs
Grand Total			Rs. 1,536.14 crore

*GPs / BPs / DPs / ZPs: Gram Panchayats / Block Panchayats / District Panchayats / Zila Panchayats

 

Background

 

In terms of the Operational Guidelines for implementation of Fifteenth Finance Commission Grants to Rural Local Bodies (RLBs) issued by the Department of Expenditure, Ministry of Finance, the Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of XV-FC grants to States for Rural Local Bodies, which are thereafter released by the Ministry of Finance. The allocated grants are recommended and released in two installments in a financial year. The recommendations of the Fifteenth Finance Commission covered a six-year period up to 31st March 2026.

 

The Untied grants are utilized by Panchayati Raj Institutions/Rural Local Bodies for location-specific felt needs under the twenty-nine subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs.

 

The Tied grants can be used for the basic services of: (a) sanitation and maintenance of ODF status, including management and treatment of household waste, and human excreta and fecal sludge management in particular; and (b) supply of drinking water, rainwater harvesting and water recycling.

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