NE NEWS SERVICE
NEW DELHI, SEPT 17
The Union Government has on Wednesday released the first installment of untied grants under the 15th Finance Commission (XV FC) to Rural Local Bodies (RLBs) in Tamil Nadu and Assam for the financial year 2025–26.
- Funds to empower Panchayati Raj Institutions in addressing local needs
- Tamil Nadu has received ₹127.59 crore, benefiting 2,901 eligible Gram Panchayats, 74 Block Panchayats, and 9 District Panchayats
As part of the release:
- Tamil Nadu has received ₹127.59 crore, benefiting 2,901 eligible Gram Panchayats, 74 Block Panchayats, and 9 District Panchayats.
- Assam has received ₹214.54 crore, covering 2,192 Gram Panchayats, 156 Block Panchayats, and all 27 Zilla Parishads.
Role of Ministries in Grant Disbursal
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV FC grants to states, which are then disbursed by the Ministry of Finance. The grants are released in two installments each financial year.
Purpose of Grants
- Untied Grants: To be used by RLBs/PRIs for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment expenses.
- Tied Grants: Meant specifically for basic services, including:
- Sanitation and maintenance of ODF status, covering household waste management, fecal sludge treatment, and related services.
- Drinking water supply, along with rainwater harvesting and water recycling projects.
Strengthening Local Governance
The release of funds underlines the Centre’s focus on empowering Panchayati Raj Institutions (PRIs) to address developmental priorities at the grassroots level, thereby improving rural infrastructure, sanitation, and water supply systems in line with sustainable development goals.
