The Union government has allocated more than Rs 3,324 crore to bolster rural local bodies in Bihar, Uttar Pradesh, Haryana, Himachal Pradesh, and West Bengal. This funding is part of the second installment of the 15th Finance Commission’s untied grants for the financial year 2025–26. Bihar has received Rs 802.40 crore, benefiting all its district panchayats, block panchayats, and gram panchayats.
Uttar Pradesh has been granted Rs 1,559.40 crore for its district panchayats, block panchayats, and gram panchayats. Additionally, West Bengal has been allocated Rs 680.86 crore for its district panchayats, block panchayats, and gram panchayats. Haryana has received Rs 197.627 crore for various panchayats, with additional funds released to eligible local bodies. Himachal Pradesh’s allocation stands at Rs 68.30 crore, with further funds released to newly eligible gram panchayats.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of these grants to states for Panchayati Raj institutions. The grants are provided in two installments during a financial year. Untied grants can be used by Panchayati Raj institutions and rural local bodies to address specific needs under the Eleventh Schedule, excluding salaries and establishment costs.
Tied grants are designated for sanitation services, maintenance of ODF status, and water-related projects. This includes managing household waste, human excreta, faecal sludge, and ensuring the supply of drinking water, rainwater harvesting, and water recycling.
