Centre Releases XV FC Grants to Strengthen Rural Governance in Assam

The release includes the second installment of Untied Grants for FY 2024–25 amounting to ₹219.24 crore, earmarked for all eligible District, Block, and Gram Panchayats across the state.

The Union Government has released significant allocations under the Fifteenth Finance Commission (XV FC) Grants for the State of Assam during the Financial Year 2025–26, giving a major push to the functioning and development of Rural Local Bodies (RLBs). The release includes the second installment of Untied Grants for FY 2024–25 amounting to ₹219.24 crore, earmarked for all eligible District, Block, and Gram Panchayats across the state.

In addition to this, the Centre has also released ₹4.698 crore—the previously withheld portion of the first installment—for 26 additional eligible Block Panchayats, further strengthening Assam’s decentralized governance framework.

Allocation Across Panchayati Raj Institutions

The newly released funds support all eligible levels of Panchayati Raj Institutions (PRIs) in Assam, including:

• 27 District Panchayats (DPs)

• 182 Block Panchayats (BPs)

• 2,192 Gram Panchayats (GPs)

This comprehensive coverage ensures that grassroots governance institutions across the state receive financial backing to deliver public services and address local developmental needs.

How the Grants Are Recommended and Released

The XV Finance Commission recommends grants to States for Rural Local Bodies based on parameters such as population, area, performance, and audit compliance. The funding mechanism involves coordination among three Central bodies:

1. Ministry of Panchayati Raj

2. Ministry of Jal Shakti (Department of Drinking Water and Sanitation)

3. Ministry of Finance, which ultimately issues the grant release

These grants are disbursed in two installments every financial year, subject to States meeting the stipulated conditions such as timely submission of accounts, utilization certificates, and compliance with audit norms.

Purpose and Utilisation of Untied Grants

The Untied Grants, which form the majority of the amount released to Assam, are meant to empower local bodies to address location-specific felt needs without rigid spending restrictions. However, they must be utilized strictly within the scope of the 29 subjects listed in the Eleventh Schedule of the Constitution, which include areas such as:

• Rural housing

• Drinking water

• Health and sanitation

• Rural electrification

• Roads and bridges

• Agriculture and land improvement

• Social welfare

• Women and child development

Notably, these grants cannot be used for salaries or establishment costs, ensuring funds are spent directly on developmental activities and public services.

Utilisation Scope of Tied Grants

Although this release primarily concerns Untied Grants, the guidelines also reiterate the role of Tied Grants, which are allocated for clearly defined essential services:

a) Sanitation and maintenance of ODF (Open Defecation Free) status, including:

• Management of household waste

• Safe collection, treatment, and disposal of human excreta

• Fecal sludge and septage management

b) Drinking water supply and related services, including:

• Rainwater harvesting

• Water recycling and reuse

• Strengthening water security in rural areas

These mandates aim to improve quality of life in villages by ensuring cleanliness, public health, and water availability.

Strengthening Decentralized Governance in Assam

The release of these XV-FC grants reflects the Union Government’s ongoing commitment to strengthening local governance in Assam and promoting equitable rural development. With significant funds now made available, Panchayati Raj Institutions across the state will be better positioned to implement community-led projects, enhance service delivery, and address local priorities.

By ensuring financial empowerment of local bodies, the government continues to reinforce the constitutional vision of decentralized planning and participatory rural development.