SDG 16: Peace, Justice & Strong Institutions | SDG 11: Sustainable Cities & Communities
Institutions: Ministry of Panchayati Raj | Government of West Bengal
The Union Government has released ₹680.71 crore as the first instalment of Untied (Basic) Grants under the 15th Finance Commission (XV-FC) for rural local bodies (PRIs) in West Bengal for FY 2025-26.This funding covers 3,224 Gram Panchayats, 335 Block Panchayats, and 21 Zilla Parishads across the state. Over the two fiscal years 2024-25 and 2025-26 combined, West Bengal is slated to receive ₹4,181.23 crore, including both untied and tied grants, to support varied local development needs.
Untied grants allow local bodies flexibility to prioritise projects suited to their specific needs (excluding salaries), while tied grants are earmarked for critical services like sanitation, drinking water, stormwater drainage, and maintaining open defecation–free status.
This transfer strengthens the fiscal capacity and autonomy of Panchayati Raj Institutions (PRIs) in West Bengal, enabling them to address locally defined needs in areas like infrastructure, environment, and livelihoods. Because untied funding allows discretion, PRIs can respond faster to emerging issues, increasing responsiveness and accountability at the grassroots. At the same time, tied grants ensure essential service delivery in sectors vital to public health and sanitation. This blend supports more balanced decentralisation and better alignment between state and central priorities.
Relevant Question for Policy Stakeholders:
How can states and local bodies design transparent systems to ensure that untied funds are used for the highest-impact local projects, while maintaining accountability and avoiding misallocation?
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Union Government Releases Over ₹680 Crores Under XV Finance Commission to Strengthen PRIs in West Bengal