Centre Releases Over ₹723 Crores as grants for Rural Local Bodies in Rajasthan and Jharkhand under XVth Finance Commission

28 December 2025: The Union Government has released Fifteenth Finance Commission (XV FC) Grants during the Financial Year 2025–26 to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Rajasthan and Jharkhand. In Rajasthan, the first instalment of Untied Grants for FY 2025–26 amounting to ₹303.0419 crores has been released for eligible 24 District Panchayats, 339 Block Panchayats, and 3,857 Gram Panchayats of the State. Further, ₹145.24 crores of the withheld portion of the first and second instalments of Untied Grants for FY 2024–25 has also been released to additionally eligible Rural Local Bodies in Rajasthan. While for the State of Jharkhand, the Union Government has released the first instalment of Untied Grants for FY 2024–25 amounting to ₹275.1253 crores for all eligible 24 District Panchayats, 253 eligible Block Panchayats, and 4,342 eligible Gram Panchayats across the State.

Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC grants to States for Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) which are then released by Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year. The Untied Grants will be utilized by PRIs/ RLBs for location-specific felt needs, under the Twenty-Nine Subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.