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Key Points

The Centre has released over Rs 284 crore to strengthen rural local bodies in three states. Mizoram received Rs 14.27 crore for its village councils while Odisha got the largest share of Rs 240.81 crore. Tripura was allocated Rs 29.75 crore for various local governance institutions. These untied grants can be used for location-specific needs excluding salary expenditures.

Key Points: Centre Releases Rs 284 Crore Finance Commission Grants for Rural Bodies

  • Rs 240.8 crore allocated to Odisha for 6,085 Gram Panchayats
  • Mizoram receives Rs 14.27 crore for 827 village councils
  • Tripura gets Rs 29.75 crore for local governance bodies
  • Grants released in two installments per financial year
2 min read

Centre releases over Rs 284 crore to strengthen rural local bodies in Mizoram, Odisha, Tripura

Government allocates Rs 284 crore to Mizoram, Odisha, and Tripura rural local bodies under 15th Finance Commission grants for 2025-26 financial year.

"The Untied Grants will be utilised for location-specific felt needs, except for salaries and other establishment costs. - Ministry of Panchayati Raj"

New Delhi, Aug 26

The government on Tuesday said it has released more than Rs 284 crore under the 15th Finance Commission (XV FC) Untied Grants for rural local bodies in three states during the financial year 2025–26.

Mizoram has received Rs 14.2761 crore for 827 eligible village councils as part of the 2023–24 grants while Odisha has been allocated Rs 240.8149 crore for 6,085 eligible Gram Panchayats and 63 eligible Block Panchayats.

Tripura has been provided Rs. 29.75 crore for 606 eligible Gram Panchayats, 35 eligible Block Panchayats, 8 eligible Zilla Parishads along with all 587 Village Committees and 40 eligible Block Advisory Committees of the state as part of the 1st installment of Untied Grants of the financial year 2025–26.

The government, through Ministry of Panchayati Raj and Ministry of Jal Shakti, recommends release of XV-FC grants to states for rural local bodies (RLBs)/ Panchayati Raj Institutions (PRIs).

These allocated grants are recommended and released in 2 installments in a financial year.

The Untied Grants will be utilised for location-specific felt needs, except for salaries and other establishment costs.

The Tied Grants can be used for the basic services of 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 supply of drinking water, rainwater harvesting and water recycling.

In March, the Centre released Rs 436 crore as the second instalment of the Fifteenth Finance Commission grants for rural local bodies in Karnataka and Tripura for the financial year 2024–25, to strengthen local governance and drive rural transformation.

Meanwhile, the Union Cabinet, chaired by Prime Minister Narendra Modi, last month approved a total outlay of Rs 6,520 crore, including an additional amount of Rs 1,920 crore, for the ongoing Central sector Pradhan Mantri Kisan Sampada Yojana (PMKSY) during the 15th Finance Commission cycle from 2021-22 to 2025-26.

- IANS

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Reader Comments

P
Priya S
Northeast states getting attention is always welcome. Mizoram and Tripura need this infrastructure boost. Hope the funds actually reach the villages and don't get stuck in bureaucratic delays.
S
Sarah B
The focus on sanitation and drinking water is crucial. Many rural areas still struggle with basic amenities. Hope this leads to tangible improvements in people's daily lives.
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Arjun K
While the allocation is good, I hope there's proper monitoring mechanism. Often funds get misused at local level. Gram Sabhas should have active role in deciding how this money is spent.
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Nisha Z
Odisha getting the largest share makes sense given its population and number of panchayats. Proper utilization of these funds can really transform rural infrastructure in these states. 👍
M
Michael C
The two-installment system seems practical. Allows for better fund management and course correction if needed. Hope the states have the capacity to absorb and utilize these funds effectively.

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