The government announced the release of more than Rs 1,789 crore under the 15th Finance Commission grants to enhance rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra. This funding, known as Untied Grants, is aimed at bolstering Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) during the financial year 2025–26. The allocations cover various financial years and are intended to reinforce rural local governance structures.
In Chhattisgarh, the government disbursed the second installment of Untied Grants totaling Rs 232.60 crore to 33 District Panchayats (DPs), 146 Block Panchayats (BPs), and 11,693 Gram Panchayats (GPs). Additionally, an amount of Rs 8.0238 crore from the first installment’s withheld portion was released to 1 DP, 8 BPs, and 350 GPs. Gujarat received Rs 509.2177 crore as the second installment, benefiting 33 DPs, 247 BPs, and 14,563 GPs, with an additional Rs 14.64 lakh released to 2 more GPs.
Madhya Pradesh saw the release of Rs 630.6454 crore as the first installment of Untied Grants for 51 DPs, 296 BPs, and 22,914 GPs. Furthermore, Rs 104.6556 crore from the withheld portions of the 1st and 2nd installments for FY 2023–24 were disbursed to 21 DPs, 106 BPs, and 834 GPs. Telangana received Rs 256.2101 crore as the second installment for FY 2024–25, benefiting 12,702 GPs. Maharashtra was allocated Rs 151.1856 crores from the withheld portions of the 1st and 2nd installments for FY 2022–23, benefiting 12 DPs, 125 BPs, and 324 GPs.
The grants are provided in two installments within a financial year. Untied Grants are to be used by RLBs for specific local needs, excluding salaries and establishment costs. Tied Grants are designated for sanitation services, maintenance of ODF status, waste management, water supply, rainwater harvesting, and water recycling.
