Centre Releases ₹1,155 Crore XV FC Untied Grants to PRIs in AP, Maharashtra, Tripura

The grants are aimed at enabling village, block and district-level institutions to address location-specific needs and improve service delivery at the grassroots.

The Union Government has released the second instalment of the XV Finance Commission (XV FC) Untied Grants for FY 2025–26 to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Andhra Pradesh, Maharashtra and Tripura, reinforcing its push to strengthen grassroots governance and support locally driven development.

The grants are aimed at enabling village, block and district-level institutions to address location-specific needs and improve service delivery at the grassroots.

State-wise releases

In Andhra Pradesh, the Centre has released ₹41,076 lakh (₹410.76 crore) as the second instalment. The funds will benefit:

• 13,092 Gram Panchayats

• 650 Block Panchayats

• All 13 District Panchayats in the State

For Maharashtra, an amount of ₹71,432 lakh (₹714.32 crore) has been released, covering:

• 26,407 Gram Panchayats

• 15 Block Panchayats

• 2 Zilla Parishads

In Tripura, the second instalment of ₹3,060 lakh (₹30.6 crore) has been released, benefiting:

• 606 Gram Panchayats

• 35 Block Panchayats

• 8 Zilla Parishads

• 587 Village Committees

• 40 Block Advisory Committees

• 1 TTAADC Headquarters

Additionally, the Centre has released ₹85 lakh from the withheld portion of the first instalment for FY 2025–26 to one additional eligible TTAADC Headquarters in Tripura.

Empowering local development

The Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation (Ministry of Jal Shakti) recommend the release of XV FC grants to States, which are then disbursed by the Ministry of Finance. These grants are released in two instalments each financial year.

The Untied Grants can be utilised by PRIs and RLBs to address local felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment expenses. This flexibility allows local bodies to prioritise development works most relevant to their communities.

In contrast, Tied Grants are earmarked for basic services, specifically:

• Sanitation and maintenance of ODF status, including solid and liquid waste management and faecal sludge management

• Drinking water supply, rainwater harvesting and water recycling

Strengthening grassroots governance

The latest release underscores the Centre’s commitment to decentralised development and cooperative federalism, enabling Panchayats and rural local bodies to play a stronger role in planning and implementing development initiatives that directly impact citizens’ daily lives.