The Union Government has released ₹275.1253 crores as Fifteenth Finance Commission (XV FC) grants during FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) in Jharkhand. This release pertains to the 2nd installment of Untied Grants for FY 2024–25 and will benefit all eligible 24 District Panchayats (DPs), 253 Block Panchayats (BPs) and 4,342 Gram Panchayats (GPs) in 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 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. While 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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