Centre releases ₹717 crore XV Finance Commission grants for rural bodies in Maharashtra

The released amount covers a wide network of rural local bodies, including 2 District Panchayats (Zilla Parishads), 15 Block Panchayats (Panchayat Samitis), and 26,544 Gram Panchayats.

The Union Government has released ₹717.17 crore for Rural Local Bodies (RLBs) in Maharashtra under the XV Finance Commission, marking the first instalment of Untied Grants for the financial year 2025–26. The funds have been disbursed to duly elected and eligible Panchayati Raj Institutions (PRIs) across the state to strengthen grassroots governance and improve local service delivery.

The released amount covers a wide network of rural local bodies, including 2 District Panchayats (Zilla Parishads), 15 Block Panchayats (Panchayat Samitis), and 26,544 Gram Panchayats. The grants are expected to support decentralised planning and empower local governments to address community-specific development needs.

Under the established mechanism, the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV Finance Commission grants to States for Rural Local Bodies. The Ministry of Finance then releases the funds based on eligibility conditions, performance benchmarks, and compliance requirements. These grants are provided in two instalments each financial year.

The Untied Grants allow Panchayati Raj Institutions to utilise funds for locally felt, location-specific needs within the scope of the 29 subjects listed in the Eleventh Schedule of the Constitution. However, the grants cannot be used for salaries or other establishment-related expenses. This flexibility enables local bodies to prioritise development works such as rural infrastructure, community assets, and essential services.

In addition to Untied Grants, the XV Finance Commission also provides Tied Grants, which are earmarked for basic civic services. These include:(a) sanitation and maintenance of Open Defecation Free (ODF) status, with a focus on solid and liquid waste management, including treatment of household waste, human excreta, and faecal sludge; and(b) drinking water supply, rainwater harvesting, and water recycling initiatives.

The timely release of funds is expected to accelerate rural development, strengthen sanitation and water management systems, and enhance the overall quality of life in rural Maharashtra. The government reiterated that sustained financial support to Panchayati Raj Institutions is critical for deepening decentralisation and achieving inclusive, grassroots-led development.