Governance – Centre Releases Over Rs 1,500 Crore to Strengthen Rural Bodies
Governance – The Union government on Tuesday announced the release of more than Rs 1,500 crore under the 15th Finance Commission to bolster rural local governance across six states. The financial assistance, distributed as both tied and untied grants for the financial year 2025–26, aims to enhance the functioning of Panchayati Raj Institutions and enable targeted development at the grassroots level.
Funds Allocated to Strengthen Local Governance
According to the Ministry of Panchayati Raj, the grants have been sanctioned for Telangana, Rajasthan, Maharashtra, Uttarakhand, Mizoram, and Meghalaya. These funds are intended to empower rural local bodies by giving them greater flexibility in addressing local development needs while also supporting essential services.
Untied grants allow local bodies to spend funds based on specific regional requirements, while tied grants are earmarked for critical sectors such as sanitation and drinking water.
Telangana and Uttarakhand Receive Initial Installments
Telangana has been allocated Rs 247.94 crore as the first installment of untied grants for the current financial year. The amount will benefit 12,600 eligible Gram Panchayats across the state, helping strengthen administrative and development functions at the village level.
In Uttarakhand, Rs 91.31 crore has been released as the second installment of untied grants. The funds will support all 13 District Panchayats, 95 Block Panchayats, and 7,784 eligible Gram Panchayats. Additionally, Rs 1.84 crore from previously withheld funds has been released to cover 216 more eligible Gram Panchayats.
Rajasthan Receives Significant Share
Rajasthan has received Rs 315.61 crore as the second installment of untied grants for 2025–26. The allocation covers all 33 District Panchayats, 352 Block Panchayats, and 3,857 eligible Gram Panchayats in the state.
The Centre has also released Rs 12.57 crore from withheld funds, extending benefits to an additional nine Zilla Panchayats and 13 Block Panchayats.
Meghalaya Gets Both Tied and Untied Grants
Meghalaya has been granted Rs 27 crore as the second installment of untied funds for the financial year 2021–22. These funds are designated for the state’s three Autonomous District Councils—Khasi, Garo, and Jaintia.
In addition, Rs 22.20 crore has been released as tied grants, covering 816 eligible Village Councils, including those within Autonomous District Council areas.
Maharashtra Receives Multiple Fund Releases
Maharashtra has received a substantial share through various installments. The Centre released Rs 109.06 crore each from withheld portions of the first and second installments of tied grants, benefiting 12 District Panchayats and 125 Block Panchayats.
Further allocations include Rs 116.97 crore from withheld funds of the 2024–25 financial year, covering additional district, block, and gram panchayats. Another Rs 329.21 crore has been released as part of tied grants for the same financial year, extending support to thousands of Gram Panchayats.
Additionally, Rs 72.70 crore each has been disbursed as withheld portions of untied grants for 2025–26, benefiting the same set of district and block-level bodies.
Focus on Grassroots Development
The government stated that these financial transfers are part of its continued effort to strengthen decentralized governance. By ensuring timely release of funds, the Centre aims to improve service delivery, infrastructure development, and accountability at the village level.
The allocation also reflects a broader push to empower Panchayati Raj Institutions, enabling them to function more effectively and respond to local needs with greater autonomy.