Government Releases Untied Grants for Local Bodies Across India
The Union Government has approved substantial financial support for grassroots governance by releasing the Fifteenth Finance Commission (XV FC) Untied Grants for the fiscal year 2025–26. This funding, aimed at Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs), will significantly aid in local development initiatives across Madhya Pradesh, Jharkhand, Punjab, and Mizoram.
Financial Aid for Madhya Pradesh
In Madhya Pradesh, a significant amount of Rs. 631.91 crores has been disbursed as the second installment of Untied Grants for the financial year 2025-26. This funding will support 51 District Panchayats (DPs), 300 Block Panchayats (BPs), and 22,933 Gram Panchayats (GPs). Additionally, Rs. 1.26 crores, which were withheld from the first installment, have now been released for four additional BPs and 19 GPs, further enhancing financial accessibility for local governance.
Grants for Jharkhand
Similarly, Jharkhand has received its first installment of Untied Grants, totaling Rs. 269.03 crores. This allocation will benefit 23 DPs, all 264 BPs, and 4,344 GPs within the state. Furthermore, Rs. 3.65 crores—formerly withheld from the first and second installments of the previous fiscal year—have also been made available to support 11 additional BPs and two GPs.
Support for Punjab
In Punjab, the government has allocated Rs. 222 crores as the second installment of untied grants for FY 2025–26. This funding will provide aid to 13,262 GPs, 150 BPs, and all 22 eligible DPs, allowing for tailored community development projects across the region.
Funding for Mizoram
Mizoram is also set to benefit from this initiative, having received Rs. 14.80 crores in the second installment of untied grants. This support is directed to the 816 eligible Village Councils in the state, empowering local governance and fostering regional growth.
Purpose of the Grants
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) oversee the distribution of these grants, which are recommended by the XV-FC and released by the Ministry of Finance in two installments each financial year. The Untied Grants are specifically designated to address local needs as identified by PRIs and RLBs, allowing them to focus on various development priorities outlined in the Eleventh Schedule of the Constitution. It is important to note that these funds cannot be used for salaries or establishment expenses.
Additionally, Tied Grants are allocated for critical services such as sanitation, maintenance of open defecation-free (ODF) status, and ensuring access to drinking water, which includes management strategies for household waste and fecal sludge. This comprehensive support aims to empower local bodies to respond effectively to their communities’ unique challenges.
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