Centre Releases ₹15.20 Crore as First XV-FC Grant to Strengthen Mizoram’s Rural Bodies

The release of XV-FC grants is part of the Government of India’s ongoing effort to strengthen the functioning, autonomy, and service delivery capacity of local self-governance institutions in rural areas.

The Union Government has released the first instalment of ₹15.20 crore to Mizoram under the 15th Finance Commission (XV-FC) grants for Rural Local Bodies (RLBs) for FY 2025–26. Although released in the current financial year, these funds correspond to the 2024–25 allocation, ensuring continuity of financial support for grassroots governance and essential public services. The instalment covers all eligible Village Councils, including those functioning within the Autonomous District Council (ADC) regions of the state.

The release of XV-FC grants is part of the Government of India’s ongoing effort to strengthen the functioning, autonomy, and service delivery capacity of local self-governance institutions in rural areas. The grants are recommended jointly by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), while the Ministry of Finance oversees the financial disbursement to states. Each state receives the grants in two instalments annually, based on eligibility and utilisation norms.

The XV-FC grants are divided into Untied Grants and Tied Grants, ensuring flexibility as well as targeted support:

Untied Grants

These grants empower Rural Local Bodies to take up location-specific development works based on community priorities. They can be used for improving public infrastructure, community assets, small-scale development works, and local service delivery. However, they cannot be used for salaries, administrative expenses, or establishment costs. This ensures that funds directly contribute to tangible developmental outcomes at the grassroots level.

Tied Grants

These grants must be used for core public services, including:

• Sanitation and maintenance of Open Defecation Free (ODF) status,

• Provision of drinking water,

• Rainwater harvesting,

• Water conservation and recycling initiatives.

These sectors have been identified as national priorities under flagship missions such as Jal Jeevan Mission, Swachh Bharat Mission, and rural water security programmes.

The release of funds to Mizoram is expected to support sustainable rural development, improve service delivery in remote villages, and reinforce the decentralised governance structure. This financial assistance will further enhance the state’s efforts to maintain sanitation standards, secure potable water supply, and empower Village Councils to respond effectively to local needs.

The release reaffirms the Union Government’s commitment to strengthening local governance mechanisms and ensuring that development benefits reach the last mile in the northeastern region.