The Union Government has released over ₹1,133 crores as Fifteenth Finance Commission (XV FC) grants during FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab and Telangana. In Madhya Pradesh, an amount of ₹65,255 lakhs (₹652.55 crores) has been released as the second instalment of Untied Grants for FY 2024–25.
The funds will benefit all 52 eligible District Panchayats, 312 eligible Block Panchayats and 23,001 eligible Gram Panchayats in the State. Additionally, ₹77 lakhs representing the withheld portion of the first instalment of Untied Grants for FY 2024–25, has also been released to 3 additionally eligible Block Panchayats and 6 Gram Panchayats.
For Punjab, the Union Government has released ₹22,200 lakhs (₹222 crores) as the first instalment of Untied Grants for FY 2025–26. These funds will support all 13,262 eligible Gram Panchayats, 150 eligible Block Panchayats and 22 eligible District Panchayats across the State.
While for the State of Telangana, ₹25,602.95 lakhs (₹256.0295 crores) has been released as the first instalment of Untied Grants for FY 2024–25, benefiting 12,702 eligible Gram Panchayats. Further, ₹233.18 lakhs, being the withheld portion of the second instalment of Untied Grants for FY 2023–24, has also been released to 11 additionally eligible Gram Panchayats and 40 Block Panchayats.
Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC grants to States for Rural Local Bodies, which is then released by Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year.
The Untied Grants will be 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, and this should include 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.