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Centre Releases First Instalment of XV Finance Commission Grants for Sikkim

The Union Government has disbursed the first instalment of XV Finance Commission Untied Grants, totalling ₹643.50 lakh, for Sikkim's Rural Local Bodies in the 2025-26 financial year. The funds are allocated to five eligible District Panchayats and all 199 eligible Gram Panchayats across the state. An additional ₹17.50 lakh, which was withheld from the second instalment of the previous fiscal year, has also been released to one more District Panchayat. These untied grants provide flexibility for local bodies to address specific needs under constitutional subjects, excluding salary expenditures.

Key Points: XV Finance Commission Grants Released for Sikkim Rural Bodies

  • First instalment for FY 2025-26 released
  • Funds allocated to 5 DPs and 199 GPs
  • Additional ₹17.50 lakh from previous year
  • Grants support 29 constitutional subjects
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Centre releases first instalment of XV Finance Commission Grants for Sikkim's rural local bodies

Union Govt releases ₹643.50 lakh in untied grants to Sikkim's rural local bodies for 2025-26, boosting grassroots development.

"The Untied Grants will be utilised by Panchayati Raj Institutions... for location-specific felt needs - Ministry of Panchayati Raj"

New Delhi, January 15

The Union Government has released the first instalment of the XV Finance Commission Untied Grants for Rural Local Bodies in Sikkim for the financial year 2025-26.

According to an official press release from the Ministry of Panchayati Raj, the total disbursement for this instalment amounts to Rs 643.50 lakh. The funding is intended to bolster the administrative and developmental capacity of the state's grassroots institutions.

These funds are allocated to five eligible District Panchayats (DPs) and all 199 eligible Gram Panchayats (GPs) across the state. In addition to the allocation for the current financial year, the government has also released Rs 17.50 lakh.

This amount constitutes the withheld portion of the second instalment of Untied Grants for the 2024-25 financial year and is provided to one additionally eligible District Panchayat.

"The Union Government has released the first instalment of the XV Finance Commission Untied Grants for Rural Local Bodies in Sikkim for the financial year 2025-26, amounting to ₹643.50 lakhs. These funds are for the eligible 5 District Panchayats (DPs) and all 199 eligible Gram Panchayats (GPs) of the State. Further, Rs17.50 lakhs of the withheld portion of the 2nd instalment of Untied Grants for FY 2024-25 has also been released to an additional eligible 1 District Panchayat," the release said.

The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti's Department of Drinking Water and Sanitation, recommends the release of XV-FC grants to the states for their Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs).

Once these recommendations are finalised, the Ministry of Finance releases the allocated funds.

Under the existing guidelines, grants are recommended and released in two instalments within a single financial year. This ensures a consistent flow of financial resources to the rural local bodies. The Untied Grants provide these institutions with the flexibility to address diverse local requirements.

The Ministry release states that "The Untied Grants will be utilised by Panchayati Raj Institutions (PRIs) / Rural Local Bodies (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 are focused on delivering essential basic services to the rural population. A major portion of these funds is dedicated "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 faecal sludge management in particular, and (b) supply of drinking water, rainwater harvesting and water recycling."

- ANI

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Reader Comments

S
Sarah B
As someone who has visited Sikkim, I've seen how well-maintained the villages are compared to many other places. This targeted funding for Gram Panchayats should help them maintain that standard and improve essential services. Good to see the focus on ODF status and drinking water.
A
Arjun K
₹643.50 lakh for 5 DPs and 199 GPs? That's roughly ₹3.2 lakh per Gram Panchayat on average for this instalment. While welcome, it's a modest amount for annual development. The real test is efficient, corruption-free utilisation. Hope the PRIs have the capacity to spend it well.
P
Priya S
Excellent news! Strengthening Panchayati Raj is strengthening democracy at the grassroots. Sikkim's local bodies can now plan for their communities without waiting for state capital. The focus on the 29 subjects in the Eleventh Schedule is constitutionally sound. Jai Hind!
M
Michael C
The article mentions the release of a withheld portion from last year. This highlights a common issue with fund flows - delays and withholds. While the current release is good, consistent and timely disbursement is key for local bodies to execute their annual plans.
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Nisha Z
Hope other states, especially in the Northeast, get similar timely grants. Rural local bodies are the first point of contact for citizens. When they are empowered financially, development becomes more inclusive and responsive. Thumbs up for this move! 👍

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