The Union Government has released over ₹1,133 crores as Fifteenth Finance Commission (XV FC) grants for FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Madhya Pradesh, Punjab, and Telangana. These grants aim to support location-specific developmental priorities of rural local bodies under the Eleventh Schedule of the Constitution.
State-wise Fund Release
Madhya Pradesh:
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₹65,255 lakhs (₹652.55 crores) released as the second instalment of Untied Grants for FY 2024–25.
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Benefits 52 District Panchayats, 312 Block Panchayats, and 23,001 Gram Panchayats.
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Additional ₹77 lakhs released as withheld portion of the first instalment to 3 Block Panchayats and 6 Gram Panchayats.
Punjab:
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₹22,200 lakhs (₹222 crores) released as first instalment of Untied Grants for FY 2025–26.
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Covers 22 District Panchayats, 150 Block Panchayats, and 13,262 Gram Panchayats.
Telangana:
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₹25,602.95 lakhs (₹256.03 crores) released as first instalment of Untied Grants for FY 2024–25, benefiting 12,702 Gram Panchayats.
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₹233.18 lakhs released as withheld portion of the second instalment of FY 2023–24 to 11 Gram Panchayats and 40 Block Panchayats.
Purpose and Utilization of XV-FC Grants
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV-FC grants to States, which are subsequently disbursed by the Ministry of Finance.
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Untied Grants: For location-specific needs under the 29 subjects of the Eleventh Schedule, excluding salaries and other establishment costs.
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Tied Grants: For essential services including:
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Sanitation and maintenance of ODF status, including management of household waste, human excreta, and fecal sludge.
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Drinking water supply, rainwater harvesting, and water recycling initiatives.
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This strategic funding is expected to strengthen grassroots governance and accelerate rural development in these states.