- Gujarat Among Top Beneficiaries with Massive Tied Grants for Grassroots Governance
- Over 14,500 Gram Panchayats in Gujarat Set to Gain from Latest Release
- Centre Channels Funds to Strengthen Water, Sanitation and Rural Infrastructure
- Eight States Covered Under Latest Finance Commission Disbursement Drive
Tied & Untied Grants to Boost Localised Development Across Villages
NE NEWS SERVICE
NEW DELHI, MAR 31
In a major boost to grassroots governance—with Gujarat emerging as a key beneficiary—the Union Government has released over ₹2,461 crore as XV Finance Commission (XV-FC) grants to Rural Local Bodies across eight states during FY 2025–26.
A significant portion of the allocation has been directed to Gujarat, which has received ₹763.83 crore as the second installment of tied grants for FY 2025–26. The funds will benefit all 33 eligible District Panchayats, 247 Block Panchayats and 14,563 Gram Panchayats across the state. Additionally, a withheld portion of ₹7.338 lakh has been released for two more eligible Gram Panchayats.
The grants, routed through the Ministry of Finance based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti, aim to further strengthen rural local governance and infrastructure.
Other states benefiting from the release include Chhattisgarh, Madhya Pradesh, Punjab and Sikkim, which have received tied grants, while withheld portions of both tied and untied grants have been disbursed to Himachal Pradesh, Odisha, Sikkim and Tripura.
The Union Government stated that the allocations “cover different financial years and aim to further strengthen rural local governance.”
As per guidelines, untied grants can be utilised by Panchayati Raj Institutions for location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. Meanwhile, tied grants are earmarked for critical services such as sanitation, maintenance of Open Defecation Free (ODF) status, waste management, and drinking water supply, including rainwater harvesting and recycling.
With Gujarat receiving one of the largest shares, the latest disbursement is set to accelerate rural development, strengthen civic infrastructure, and empower local governance institutions at the grassroots level.
