Centre Releases ₹15.20 Crore in XV Finance Commission Grants for Mizoram’s Village Councils

The funds, released during the financial year 2025–26, represent the second instalment of untied grants for FY 2024–25 and will benefit all 808 eligible Village Councils across Mizoram.

The Union Government has released ₹15.20 crore to rural local bodies (RLBs) in Mizoram under the Fifteenth Finance Commission (XV-FC), providing a significant boost to grassroots governance and local development in the State.

The funds, released during the financial year 2025–26, represent the second instalment of untied grants for FY 2024–25 and will benefit all 808 eligible Village Councils across Mizoram.

Strengthening Grassroots Self-Governance

The XV-FC grants are part of the Union Government’s commitment to strengthening Panchayati Raj Institutions and rural local bodies by ensuring predictable and timely fiscal transfers.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of Finance Commission grants for rural local bodies, which are subsequently released by the Ministry of Finance. These grants are disbursed in two instalments each financial year.

Flexible Funds for Local Priorities

The untied grants released to Mizoram’s Village Councils can be utilised for location-specific development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, empowering local bodies to address priorities identified at the village level.

However, the funds cannot be used for salaries or establishment-related expenditures, ensuring that resources are directed exclusively towards development works and public services.

Focus on Basic Services Through Tied Grants

In addition to untied grants, the XV-FC framework also provides tied grants, which are earmarked for the delivery of essential services, including:

• Sanitation and maintenance of Open Defecation Free (ODF) status, covering household waste management, treatment of human excreta and faecal sludge management

• Drinking water supply, along with rainwater harvesting and water recycling

These provisions aim to strengthen public health outcomes, environmental sustainability and access to clean water in rural areas.

Boost for Rural Development in Mizoram

The release of ₹15.20 crore is expected to enhance the capacity of Village Councils in Mizoram to plan and implement development works, improve basic services and respond effectively to local needs, reinforcing the spirit of decentralised governance envisioned under the Constitution.