Kerala’s Rural Local Bodies Receive Over ₹260 Crores as First Instalment of XV Finance Commission Grants
Kerala’s Panchayats receive ₹260.20 crore as the first instalment of XV Finance Commission grants for FY 2025-26, enabling local development and water-sanitation projects.
New Delhi, December 15, 2025: The Union Government has released ₹260.20 crore to Rural Local Bodies in Kerala as the first instalment of XV Finance Commission grants for the Financial Year 2025-26. The funding covers all 14 District Panchayats, 152 Block Panchayats, and 9,414 Gram Panchayats across the state.
The release was recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and disbursed by the Ministry of Finance in line with the Finance Commission’s mandate of two installments per financial year.
The Untied Grants are intended for Rural Local Bodies/PRIs to address location-specific development needs across 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and other establishment expenditures. Tied Grants, meanwhile, are allocated for critical services including:
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Sanitation and maintenance of Open Defecation Free (ODF) status, including management and treatment of household waste, human excreta, and fecal sludge.
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Supply of drinking water, rainwater harvesting, and water recycling initiatives.
This funding marks a key step in empowering Kerala’s local self-governments to implement targeted development and infrastructure projects aligned with community needs.