Centre Releases ₹6.43 Crore in First Instalment of XV Finance Commission Grants to Rural Bodies in Sikkim
New Delhi | January 15, 2026 The Union Government on Thursday released the first instalment of XV Finance Commission Untied Grants for the financial year 2025–26 to Rural Local Bodies in Sikkim, amounting to ₹6.43 crore.
The funds have been sanctioned for five eligible District Panchayats and 199 eligible Gram Panchayats across the state, according to an official statement issued by the Press Information Bureau (PIB).
In addition, the Centre has also released ₹17.50 lakh, representing the withheld portion of the second instalment of Untied Grants for FY 2024–25, to one additional eligible District Panchayat in the state.
The release of funds follows recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), while the final disbursement is carried out by the Ministry of Finance. Under the XV Finance Commission framework, grants to states are issued in two instalments each financial year.
The Untied Grants are meant to support location-specific development needs of Panchayati Raj Institutions (PRIs) and Rural Local Bodies under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding expenditure on salaries and establishment costs.
Meanwhile, Tied Grants are earmarked for the delivery of basic services, particularly sanitation, maintenance of Open Defecation Free (ODF) status, management of household waste, fecal sludge management, and drinking water supply, including rainwater harvesting and water recycling.
The funding aims to strengthen grassroots governance and accelerate rural development initiatives in Sikkim.