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Centre Releases Rs 1,142 Crore to Boost Rural Local Bodies in 4 States

The Government of India has released over Rs 1,142 crore as untied grants to strengthen rural local bodies in Madhya Pradesh, Jharkhand, Punjab, and Mizoram for the 2025-26 financial year. The funds, allocated under the 15th Finance Commission, are distributed as instalments to eligible district, block, and gram panchayats. These untied grants can be used by panchayats for location-specific development needs across 29 subjects, excluding salaries. The release is coordinated by the Ministries of Panchayati Raj, Jal Shakti, and Finance.

Key Points: Rs 1,142 Crore Released for Rural Local Bodies in 4 States

  • Rs 1,142 crore total released
  • Funds for MP, Jharkhand, Punjab, Mizoram
  • Part of 15th Finance Commission grants
  • For panchayats and rural local bodies
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Centre releases over Rs 1,142 crore to strengthen rural local bodies in 4 states

The Centre has released over Rs 1,142 crore in untied grants to strengthen panchayats in Madhya Pradesh, Jharkhand, Punjab, and Mizoram for FY 2025-26.

"Untied Grants may be utilised by panchayati raj institutions... to meet location-specific needs - Ministry of Panchayati Raj"

New Delhi, March 25

The Centre on Friday announced the release of over Rs 1,142 crore to strengthen rural local bodies in Madhya Pradesh, Jharkhand, Punjab and Mizoram during FY 2025-26 as part of the 15th Finance Commission's untied grants.

For Madhya Pradesh, a sum of Rs 631.91 crore has been released as the second instalment of Untied Grants of FY 2025-26 for 51 eligible district panchayats, 300 block panchayats and 22,933 gram panchayats (GPs). Further, Rs 1.26 crore of withheld portion of the first instalment of untied grants for FY 2025-26 has also been released to some panchayats.

Similarly, for Jharkhand, the first instalment of untied grants of the financial year 2025-26 amounting to Rs 269.03 crore have been released. These funds are for eligible 23 district panchayats, 264 block panchayats and 4,344 gram panchayats. Further, Rs. 3.65 crore of withheld portion of first and and second instalment of untied grants for FY 2024-25 have also been released to 13 panchayats.

In the case of Punjab, the second instalment of untied grants for FY 2025-26 amounting to Rs. 222 crore has been allocated for 13,262 eligible gram panchayats, 150 eligible block panchayats and all 22 district panchayats. While for Mizoram, the second instalment of untied grants amounting to Rs 14.80 crore have been released. These funds are for all 816 eligible Village Councils of the State.

The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends release of 15th Finance Commission grants to states for panchayati raj institutions, which are then released by the Ministry of Finance. The allocated Grants are recommended and released in two instalments in a financial year.

Untied Grants may be utilised by panchayati raj institutions and rural local bodies to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs.

Tied grants can be used for the basic services of sanitation and maintenance of ODF (open defecation-free) status, and this should include management and treatment of household waste, and human excreta and faecal sludge management in particular. These grants can also be used for the supply of drinking water, rainwater harvesting and water recycling.

- IANS

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Reader Comments

P
Priyanka N
Good to see funds being allocated, but the real test is implementation. In my village, previous grants got stuck in bureaucracy. Need strict monitoring to ensure every rupee reaches the ground for projects like rainwater harvesting.
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Aman W
MP getting the largest share makes sense given its size and number of panchayats. The 'untied' part is important - lets local bodies decide based on their needs, not a one-size-fits-all Delhi plan. Hope they use it wisely.
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Sarah B
As someone who has worked in rural development, the structure of tied vs. untied grants is smart. Tied grants ensure basics like clean water and sanitation are funded, while untied grants allow for local innovation. Accountability is the key now.
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Karthik V
Respectfully, while the announcement is positive, I'm concerned about the "withheld portions" mentioned. Why were funds withheld from panchayats in the first place? This points to potential procedural delays that hurt development at the village level.
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Nisha Z
Great news for Mizoram! Even though the amount is smaller compared to bigger states, for 816 Village Councils it can make a real difference. Local governance is the backbone of the Northeast. Hope it leads to visible improvements. 👍

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