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Centre Allocates ₹1,156 Cr XV-FC Rural Grants

RR Team, January 29, 2026January 29, 2026
The Union Government has released the second instalment of XV Finance Commission (XV-FC) Untied Grants for FY 2025–26, providing over ₹1,156 Crores to strengthen rural local bodies in Andhra Pradesh, Maharashtra and Tripura. These funds are aimed at enhancing grassroots governance and supporting location-specific development initiatives.

State-Wise Grant Allocation

In Andhra Pradesh, ₹41,076 lakhs (₹410.76 Crores) have been allocated to benefit 13,092 Gram Panchayats, 650 Block Panchayats, and all 13 District Panchayats. Maharashtra receives ₹71,432 lakhs (₹714.32 Crores) covering 26,407 Gram Panchayats, 15 Block Panchayats, and 2 Zilla Parishads. Tripura is allocated ₹3,060 lakhs (₹30.6 Crores), covering all 606 Gram Panchayats, 35 Block Panchayats, 8 Zilla Parishads, 587 Village Committees, 40 Block Advisory Committees, and 1 TTAADC Headquarters. An additional ₹85 lakh from the first instalment has also been released for one more TTAADC Headquarters.

Purpose and Utilization of Grants

The XV-FC grants, recommended by the Ministry of Panchayati Raj and Ministry of Jal Shakti, and released by the Ministry of Finance, are designed to meet location-specific development needs of Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs). Untied Grants can be used for initiatives under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs.

Tied Grants are earmarked for basic services including sanitation, maintaining Open Defecation Free (ODF) status, household waste management, human excreta and fecal sludge treatment, drinking water supply, rainwater harvesting, and water recycling projects.

Strengthening Grassroots Governance

These grants aim to empower local governance institutions to implement community-centric development projects, ensuring funds address the most urgent and relevant local needs. The initiative highlights the central government’s commitment to fostering decentralised planning, accountability, and effective service delivery at the village and block levels.

Through these measures, the Union Government seeks to reinforce cooperative federalism by coordinating with State Governments to optimise the impact of XV-FC grants in improving rural infrastructure, sanitation, water supply, and overall quality of life in villages.

News #AndhraPradesh#GrassrootsEmpowerment#LocalBodies#Maharashtra#PanchayatiRaj#RuralDevelopment#RuralGovernance#SanitationIndia#Tripura#VillageDevelopment#WaterSupply#XVFinanceCommission

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