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Assam Rural Local Bodies Receive ₹299 Crore Under 15th Finance Commission Grants

The Union Government released over ₹299 crore to rural local bodies in Assam under the 15th Finance Commission grants for FY 2025-26, benefiting panchayats and autonomous councils.
Assam Rural Local Bodies Receive ₹299 Crore Under 15th Finance Commission Grants

New Delhi: The Union Government has released over ₹299 crore to rural local bodies in Assam under the 15th Finance Commission (XV-FC) grants for the financial year 2025–26. The funds aim to strengthen grassroots governance and support development work across Panchayati Raj institutions in the state.

The grant includes the second installment of untied funds amounting to ₹256.60 crore, along with ₹42.70 crore of previously withheld funds from the first installment.

Funds to Benefit Panchayats Across Assam

According to the government, the released funds will benefit multiple tiers of rural governance in Assam, including:

  • 27 District Panchayats

  • 182 Block Panchayats

  • 2,192 Gram Panchayats

Additionally, the funds will support three autonomous district councils in the state:

  • Bodoland Territorial Council

  • Karbi Anglong Autonomous Council

  • Dima Hasao Autonomous Council

These councils will also receive the ₹42.70 crore withheld portion of the first installment for FY 2025–26.

Role of the Finance Commission Grants

The grants are recommended by the Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti, and are released by the Ministry of Finance.

Under the 15th Finance Commission framework, funds are allocated to states in two installments each financial year to support rural local bodies.

 

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How the Untied Grants Can Be Used

The untied grants allow Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) to address local development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution.

However, the funds cannot be used for salaries or administrative establishment expenses.

Instead, they are meant for development projects such as:

  • Local infrastructure

  • Community facilities

  • Rural development initiatives

Use of Tied Grants

Apart from untied grants, tied grants are also provided for essential services including:

  • Sanitation and maintaining Open Defecation Free (ODF) status

  • Household waste management

  • Fecal sludge and sewage treatment

  • Drinking water supply

  • Rainwater harvesting

  • Water recycling initiatives

These initiatives aim to strengthen basic civic services and environmental sustainability in rural areas.

Strengthening Grassroots Governance

The financial assistance under the 15th Finance Commission is part of the Union Government’s effort to empower local self-governance institutions and improve public services in rural India.

With the latest release of funds, rural bodies across Assam are expected to accelerate development projects and improve essential services for local communities.

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