The government announced the release of more than Rs 1,500 crore as grants from the 15th Finance Commission to enhance rural local governance in six states. These grants were provided to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya during the fiscal year 2025–26 to strengthen grassroots governance and support local development efforts. In Telangana, the first installment of untied grants totaling Rs 247.94 crore was disbursed for 12,600 eligible Gram Panchayats (GPs).
For Uttarakhand, the second installment of untied grants amounting to Rs. 91.31 crore was released for all 13 District Panchayats (DPs), 95 Block Panchayats (BPs), and 7784 eligible GPs. Additionally, the Ministry of Panchayati Raj disclosed the release of Rs 1.84 crore, the withheld portion of the first installment of untied grants for FY 2025-26, to an additional 216 eligible GPs. Rajasthan received Rs 315.61 crore as the second installment of untied grants for the financial year 2025-2026, benefiting all 33 DPs, 352 BPs, and 3857 eligible GPs in the state.
Moreover, Meghalaya obtained Rs 27 crore as the second installment of untied grants for the financial year 2021-22, allocated to all three eligible Autonomous District Councils (Khasi, Garo, Jaintia) in the state. The Union Government also disbursed the second installment of tied grants to Meghalaya, totaling Rs.22.20 crore, for all 816 eligible Village Councils, including Autonomous District Council areas. Maharashtra received Rs 109.06 crore each as withheld portions of the 1st and 2nd installments of tied grants, benefiting an additional 12 eligible DPs and 125 BPs.
In addition, Maharashtra was allocated Rs 116.97 crore as the withheld portion of the 1st installment for FY 2024–25, covering 12 DPs, 125 BPs, and 27 GPs. The ministry further revealed the release of Rs. 329.21 crore as the withheld portion of the 2nd installment of Tied Grants for FY 2024–25 to an additional 12 DPs, 125 BPs, and 5,249 GPs. Additionally, Rs. 72.70 crore each was disbursed as the withheld portions of the 1st and 2nd installments of XV FC Untied Grants for FY 2025–26, benefiting the same set of 12 DPs and 125 BPs.
