Centre Disburses Rs 4,384 Crores as XV-FC Grants to Bihar, UP, Jharkhand & Maharashtra

The Union Government has released Rs. 4,383.98 crores as Tied and Untied Grants under Fifteenth Finance Commission (XV-FC) to Panchayati Raj Institutions (PRIs)/Rural Local Bodies (RLBs) in Bihar, Uttar Pradesh, Jharkhand and Maharashtra during FY 2025–26. This release covers allocations pertaining to different financial years and aims to further strengthen rural local governance.

For Bihar, Rs. 1,203.60 crores have been released as the 2nd instalment of XV Finance Commission (XV FC) tied grants for FY 2025–26 to all 38 District Panchayats (DPs), 533 Block Panchayats (BPs) and 8,053 Gram Panchayats (GPs) along with an additional release of Rs. 2.09 crores from the withheld portion of the 1st instalment for 3 BPs and 7 GPs that have since become eligible.  

Similarly, for Uttar Pradesh, Rs. 2,339.10 crores have been released as the 2nd instalment for all 75 DPs, 826 BPs and 57,694 GPs. Further, Rs. 16.52 crores from the withheld portion of the 1st instalment have been released to additionally eligible 2 DPs, 13 BPs and 61 GPs. 

For Jharkhand, the allocation of tied grants stands at Rs. 412.69 crores for all 24 DPs, 253 eligible BPs and 4,342 eligible GPs.

Maharashtra has received the withheld portion of the 1st instalment of XV Finance Commission (XV FC) tied grants for FY 2022–23, amounting to Rs. 104.04 crores for 12 additionally eligible DPs, 125 BPs and 50 GPs. Further, Rs. 120.61 crores from the withheld portion of the 2nd instalment of tied grants for FY 2022–23 has been released to 12 DPs, 125 BPs and 324 GPs that have now become eligible. 

Meanwhile, under untied grants, the withheld portion of the 1st instalment for FY 2023–24, amounting to Rs. 106.20 crores, has been released for 12 additionally eligible DPs, 125 BPs and 1,120 GPs. Further, Rs. 79.13 crores from the withheld portion of the 2nd instalment of untied grants for FY 2023–24 has been released to additionally eligible 12 DPs, 125 BPs and 183 GPs.

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 the Ministry of Finance. The allocated grants are recommended and released in 2 instalments 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 faecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.