Centre Releases Over ₹137 Crore to Strengthen Rural Local Bodies in Four States

New Delhi, February 20: In a significant push to grassroots governance, the Union Government has released more than ₹137 crore under the Fifteenth Finance Commission (XV-FC) grants to rural local bodies in Goa, Meghalaya, Sikkim and Uttarakhand during the financial year 2025–26.

According to the Press Information Bureau (PIB), the funds include both regular instalments and previously withheld portions, aimed at strengthening Panchayati Raj Institutions (PRIs) and improving rural infrastructure.

In Goa, ₹11.60 crore has been released as the second instalment of Untied Grants for 2023–24, benefiting two District Panchayats and 191 Gram Panchayats. Additionally, ₹2.979 crore — representing a withheld portion of the first instalment — has been disbursed to two more District Panchayats and 24 Gram Panchayats.

Meghalaya has received ₹27 crore as the second instalment for 2021–22, covering the three Autonomous District Councils of Khasi, Garo and Jaintia.

Sikkim has been allocated ₹6.60 crore as the second instalment for 2025–26, benefiting six District Panchayats and 199 Gram Panchayats. An additional ₹0.165 crore, which had been withheld earlier, has also been released for one eligible District Panchayat.

Uttarakhand received the largest share, with ₹89.4117 crore released as the first instalment for 2025–26. The funds will cover 13 District Panchayats, 95 Block Panchayats and 7,568 Gram Panchayats across the state.

The XV-FC grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti and are released by the Ministry of Finance. Untied Grants can be used by rural local bodies for location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment expenses.

Tied Grants, meanwhile, are meant for essential services such as sanitation, maintaining Open Defecation Free (ODF) status, solid and liquid waste management, drinking water supply, rainwater harvesting and water recycling.

Officials said the release will help strengthen rural governance, improve service delivery and support sustainable development initiatives at the grassroots level.