New Delhi, April 1 – The Centre announced on Wednesday the release of over ₹1,536.14 crore to strengthen local bodies in rural areas of Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana, and Uttarakhand during the 2025-26 financial year, as part of the 15th Finance Commission's grants.
The funds cover regular installments as well as withheld portions from various financial years.
₹466.79 crore was released for Rajasthan as tied grants, while ₹405.23 crore was allocated to Jharkhand and ₹371.91 crore to Telangana.
₹136.58 crore was released for the hill state of Uttarakhand and ₹53.13 crore for Odisha, while Goa and Gujarat received ₹18.27 crore and ₹2.98 crore, respectively.
Earlier, on March 25, the Centre released over ₹1,142 crore to bolster local bodies in Madhya Pradesh, Jharkhand, Punjab, and Mizoram during the 2025-26 financial year, as part of the 15th Finance Commission's untied grants.
For Madhya Pradesh, ₹631.91 crore was released as the second installment of the 2025-26 untied grants.
Similarly, for Jharkhand, the first installment of untied grants amounting to ₹269.03 crore was released for the 2025-26 financial year.
For Punjab, ₹222 crore was released as the second installment of untied grants for the 2025-26 financial year, while Mizoram received ₹14.80 crore as the second installment of untied grants.
The Union government, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of 15th Finance Commission grants to states for Panchayati Raj institutions, which are then released by the Ministry of Finance.
The allocated grants are recommended and released in two installments during a financial year.
Untied grants can be utilized by Panchayati Raj institutions and rural local bodies to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs.
Tied grants can be used for basic sanitation services and maintaining an open defecation-free status, which should include the management and treatment of household waste, and particularly the management of human excreta and fecal sludge.
These grants can also be used for supplying drinking water, rainwater harvesting, and water recycling.