Centre Releases ₹730 Crore XV Finance Commission Grants to Strengthen Local Bodies in Gujarat and Haryana
SDG 6: Clean Water and Sanitation | SDG 11: Sustainable Cities and Communities
Institutions: Ministry of Panchayati Raj
The Ministry of Panchayati Raj (MoPR) has released over ₹730 crore in grants under the 15th Finance Commission (XV FC) to empower rural local bodies in Gujarat and Haryana for FY 2025-26.
In Gujarat, ₹522.20 crore in Untied Grants has been allocated to 38 District Panchayats, 247 Block Panchayats, and 14,547 Gram Panchayats. An additional ₹13.6 crore has been released for pending portions of the previous year’s instalment. In Haryana, the first instalment of Untied Grants—₹195.13 crore—has been distributed across 18 District, 134 Block, and 6,164 Gram Panchayats.
Untied Grants can be flexibly used for local-felt needs within the 29 subjects listed in the Eleventh Schedule of the Constitution (excluding salaries and establishment). In contrast, Tied Grants are reserved for essential services such as sanitation, fecal sludge management, and drinking-water supply.
The grants reinforce India’s fiscal federalism and advance decentralised governance by enabling Panchayati Raj Institutions to plan and deliver essential services. The flexible design supports India’s Swachh Bharat Mission and Jal Jeevan Mission, ensuring rural sanitation and drinking-water systems remain locally managed and sustainable.
What is the 15th Finance Commission? → It is a constitutional body that recommends fiscal transfers from the Union to States, including grants to local bodies, to strengthen decentralised governance and service delivery. The Finance Commission is constituted once every five years, but its grants are released annually throughout its award period.
Relevant Question for Policy Stakeholders: What mechanisms can enhance local accountability and ensure data-driven monitoring of XV FC grant utilisation by Panchayati Raj Institutions?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2181122