New Delhi: The Government of India on Friday announced the release of more than ₹137 crore to bolster rural local bodies in Goa, Meghalaya, Sikkim and Uttarakhand for the financial year 2025–26.

The funds form part of the 15th Finance Commission’s untied grants, covering allocations from multiple financial years to support panchayati raj institutions and rural development initiatives.

State-wise allocations

  • Goa: ₹11.6 crore released as the second instalment of untied grants for FY 2023–24, covering 2 eligible district panchayats and 191 gram panchayats. An additional ₹2.98 crore, representing the withheld portion of the first instalment, was also released for 2 district panchayats and 24 gram panchayats.
  • Meghalaya: ₹27 crore released as the second instalment of untied grants for FY 2021–22, benefitting all three Autonomous District Councils – Khasi, Garo and Jaintia.
  • Sikkim: ₹6.6 crore released as the second instalment for FY 2025–26, covering 6 district panchayats and 199 general panchayats, along with ₹0.16 crore for an additional eligible district panchayat.
  • Uttarakhand: ₹89.41 crore released as the first instalment for FY 2025–26.

Purpose and utilisation of grants

The Ministry of Panchayati Raj, in coordination with the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of Finance Commission grants to states, which are then disbursed by the Ministry of Finance.

Untied grants may be used by rural local bodies for location-specific development needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs. Tied grants focus on essential services, including sanitation, maintaining open defecation-free (ODF) status, household waste management, faecal sludge treatment, drinking water supply, rainwater harvesting and water recycling.

The central government releases these allocations in two instalments per financial year to strengthen local governance and enhance service delivery in rural areas.

These funds aim to empower panchayati raj institutions, improve basic amenities, and support sustainable development initiatives in rural India.

IANS