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Press Information Bureau
Government of India
Ministry of Panchayati Raj
31 MAR 2026 12:06PM by PIB Delhi
Centre Disburses Over ₹2,461 Crores as XV Finance Commission Grants to Eight States

The Union Government has released XV Finance Commission (XV-FC) tied grants during the financial year 2025–26 to Rural Local Bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Punjab and Sikkim. It has also released withheld portions of both tied and untied grants to Himachal Pradesh, Odisha, Sikkim and Tripura. The release covers allocations pertaining to different financial years and aims to further strengthen rural local governance.

Release Details of State-wise Tied & Withheld Portions of Tied and Untied XV Finance Commission Grants during FY 2025–26:

S. No.

Name of the State

Grant Component

Amount (Rs. in crore)

Installment/ Year

Eligible Panchayats of the State
  1.  

Punjab

Tied

332.46

2nd Installment for FY 2025-26

13231 eligible GPs, all eligible 150 BPs and all 22 eligible DPs
  1.  

Madhya Pradesh

Tied

943.27

2nd Installment for FY 2025-26

eligible 46 DPs, 300 BPs and 22933 GPs

1.89

withheld portion of 1st instalment for FY 2025-26

additionally eligible 4 BPs and 19 GPs.
  1.  

Chhattisgarh

Tied

347.89

2nd installment for FY  2025-26

11648 eligible GPs, all eligible 146 BPs and all eligible 33 DPs

12.04

withheld portion of 1st instalment for FY 2025-26

additionally eligible 1 DP, 8 BPs and 350 GPs.

4.

Gujarat

Tied

763.83

2nd installment for FY 2025-26

all eligible 33 DPs, eligible 247 BPs and eligible 14563 GPs

0.07338

 

(7.338 lakh)

withheld portion of 1st instalment of for FY 2025-26

additionally eligible 2 GPs

5.

Sikkim

Tied

9.90

2nd installment of FY  2025-26

all 6 eligible DPs and all 199 eligible GPs

0.2475

 

(24.75 lakh)

withheld portion of 1st instalment for FY 2025-26

additionally eligible 1 DP

6.

Tripura

Tied

0.4111

 

(41.11 lakh)

withheld portion of 2nd instalment for FY 2024-25

additionally 18 eligible GPs

Untied

0.274

 

(27.40 lakh)

withheld portion of 2nd instalment for FY 2024-25

additionally 18 eligible GPs

7.

Himachal Pradesh

Untied

13.80

withheld portion of the 1st instalment for FY 2023-24

additionally 12 eligible DPs, 23 eligible BPs and 79 eligible GPs

0.0644

 

(6.44 lakh)

withheld portion of 2nd instalment for FY 2023-24

additionally 5 eligible GPs

 

8.

Odisha

Untied

35.09

withheld portion of the 1st and 2nd  installment for FY 2025-26

additionally 10 eligible DPs, 17 eligible BPs and 40 eligible GPs for both 1st as well as 2nd installment and 15 eligible GPs for 2nd installment.

 

*GPs/ BPs/ DPs – Gram Panchayats/ Block Panchayats/ District Panchayats

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 Rural Local Bodies which is 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 Panchayati Raj Institutions/ Rural Local Bodies 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.

*****

 

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