The Union Government has released Fifteenth Finance Commission (XV-FC) Untied Grants to Panchayati Raj Institutions and Rural Local Bodies in Goa, Meghalaya, Sikkim and Uttarakhand for FY 2025–26 and related pending instalments. The grants are meant to strengthen rural local governance and support local development needs through constitutionally mandated local bodies.
State-wise Grant Release
- Goa received ₹11.60 crore as the second instalment of Untied Grants for FY 2023–24 for 2 District Panchayats and 191 Gram Panchayats.
- Goa also received ₹2.979 crore as the withheld portion of the first instalment for FY 2023–24 for 2 additional District Panchayats and 24 Gram Panchayats.
- Meghalaya received ₹27.00 crore as the second instalment of Untied Grants for FY 2021–22 for the Khasi, Garo and Jaintia Autonomous District Councils.
- Sikkim received ₹6.60 crore as the second instalment of Untied Grants for FY 2025–26 for 6 District Panchayats and 199 Gram Panchayats.
- Sikkim also received ₹0.165 crore as the withheld portion of the first instalment for FY 2025–26 for one additional District Panchayat.
- Uttarakhand received ₹89.4117 crore as the first instalment of Untied Grants for FY 2025–26 for 13 District Panchayats, 95 Block Panchayats and 7,568 Gram Panchayats.
Role of Finance Commission Grants
XV-FC grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, through the Department of Drinking Water and Sanitation. The Ministry of Finance then releases the funds to the States. The grants are generally released in two instalments in a financial year.
Untied and Tied Grants
Untied Grants may be used by Panchayati Raj Institutions and Rural Local Bodies for location-specific needs under the Twenty-Nine Subjects listed in the Eleventh Schedule of the Constitution. These funds cannot be used for salaries or establishment costs. Tied Grants are meant for basic services, especially sanitation, maintenance of Open Defecation Free status, management and treatment of household waste, human excreta and faecal sludge, and drinking water-related works such as rainwater harvesting and water recycling.
Significance for Rural Governance
The release of these grants supports decentralised planning, local service delivery and infrastructure improvement in rural areas. It also reinforces the financial role of Panchayati Raj Institutions in implementing development priorities at the grassroots level.
Last Modified: April 28, 2026