The Centre has announced the allocation of more than Rs 1,142 crore to bolster rural local bodies in Madhya Pradesh, Jharkhand, Punjab, and Mizoram for the fiscal year 2025–26 under the 15th Finance Commission’s untied grants. In Madhya Pradesh, Rs 631.91 crore has been disbursed as the second installment of Untied Grants for the fiscal year 2025-26, benefiting numerous panchayats. Additionally, a withheld portion of the first installment has also been released to certain panchayats.
For Jharkhand, an amount of Rs 269.03 crore has been released as the first installment of untied grants for the financial year 2025-26. These funds are designated for various district panchayats, block panchayats, and gram panchayats. Furthermore, a withheld portion from previous fiscal years has also been disbursed to specific panchayats.
In Punjab, the second installment of untied grants for the fiscal year 2025–26 totaling Rs. 222 crore has been earmarked for eligible gram panchayats, block panchayats, and district panchayats. Similarly, Mizoram has received the second installment of untied grants amounting to Rs 14.80 crore, benefiting all eligible Village Councils in the state.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of 15th Finance Commission grants to states for panchayati raj institutions, which are then disbursed by the Ministry of Finance in two installments per financial year. These grants can be utilized by rural bodies for specific needs under the Eleventh Schedule, excluding salaries and establishment costs.
Untied grants are intended for addressing location-specific requirements under various subjects, while tied grants are allocated for services like sanitation, maintenance of ODF status, waste management, and water-related projects.
