Centre Releases Over ₹1,789 Crores XV FC Grants to Rural Local Bodies in Five States

New Delhi, 17 March 2026: The Union Government of India has released the Fifteenth Finance Commission (XV-FC) Untied Grants for Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in the states of Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra for the financial year 2025–26. The grants aim to strengthen rural local governance and support location-specific development priorities.

State-wise Grant Disbursement

Chhattisgarh: ₹232.60 crores released as the 2nd installment for 33 District Panchayats (DPs), 146 Block Panchayats (BPs), and 11,693 Gram Panchayats (GPs). Additionally, ₹8.0238 crores of withheld funds from the 1st installment were released to 1 DP, 8 BPs, and 350 GPs.
Gujarat: ₹509.2177 crores released as 2nd installment covering 33 DPs, 247 BPs, and 14,563 GPs, along with ₹14.64 lakh of withheld funds to 2 additional GPs.
Madhya Pradesh: ₹630.6454 crores released as 1st installment for 51 DPs, 296 BPs, and 22,914 GPs. An additional ₹104.6556 crores of withheld funds from FY 2023–24 were released to 21 DPs, 106 BPs, and 834 GPs.
Telangana: ₹256.2101 crores released as the 2nd installment covering 12,702 GPs.
Maharashtra: ₹151.1856 crores released from withheld portions of FY 2022–23 benefiting 12 DPs, 125 BPs, and 324 GPs.

Purpose of XV-FC Grants

The grants, recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) and released by the Ministry of Finance, are distributed in two installments per financial year.

Untied Grants: To be used by RLBs for location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.
Tied Grants: To be used for sanitation, maintenance of ODF status, waste and fecal sludge management, drinking water supply, rainwater harvesting, and water recycling initiatives.

This strategic allocation of funds strengthens grassroots governance and ensures effective implementation of essential services in rural India.