The Ministry of Panchayati Raj has announced the release of over ₹4,383.98 crore as tied and untied grants under the Fifteenth Finance Commission (XV-FC) to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) across Bihar, Uttar Pradesh, Jharkhand and Maharashtra for the financial year 2025–26.
The disbursement, which includes allocations from multiple financial years, is aimed at strengthening grassroots governance and improving delivery of essential services in rural areas.
Bihar received ₹1,203.60 crore as the second instalment of tied grants for FY 2025–26, benefiting all 38 District Panchayats, 533 Block Panchayats and 8,053 Gram Panchayats. An additional ₹2.09 crore from withheld funds was also released after certain bodies became eligible. Uttar Pradesh was allocated ₹2,339.10 crore under the same instalment, covering 75 District Panchayats, 826 Block Panchayats and 57,694 Gram Panchayats, along with ₹16.52 crore released from previously withheld funds. Jharkhand received ₹412.69 crore in tied grants for its eligible 24 District Panchayats, 253 Block Panchayats and 4,342 Gram Panchayats.
Maharashtra received multiple releases from withheld portions of earlier instalments. These include ₹104.04 crore and ₹120.61 crore under tied grants for FY 2022–23, and ₹106.20 crore and ₹79.13 crore under untied grants for FY 2023–24, benefiting several eligible district, block and gram panchayats.
The grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti, and released by the Ministry of Finance in two instalments annually. Untied grants are meant for location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. Tied grants, on the other hand, are earmarked for core services such as sanitation, maintaining Open Defecation Free (ODF) status, waste management, and ensuring safe drinking water supply, including rainwater harvesting and water recycling.
