These grants, recommended by the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation), are released by the Ministry of Finance in two instalments per financial year. Untied Grants provide Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) with the flexibility to address location-specific needs across 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and other establishment costs.
The Tied Grants are earmarked for essential services, including sanitation, maintaining Open Defecation Free (ODF) status, and management of household waste and fecal sludge. They also cover initiatives related to drinking water supply, rainwater harvesting, and water recycling. Such targeted funding is aimed at strengthening local governance and improving the quality of life in rural areas of Sikkim.
According to officials, these grants will enable Panchayats to implement projects based on the priorities and needs of their communities, ranging from basic infrastructure development to water conservation and sanitation schemes. With the release of these funds, local bodies can now plan and execute projects that directly benefit citizens while ensuring alignment with national development goals.
The Ministry of Panchayati Raj has emphasized that such financial support under the XV Finance Commission framework enhances decentralization, empowers rural governance, and ensures that the benefits of government schemes reach the grassroots level effectively. The funds also complement ongoing programs aimed at improving water supply, sanitation, and overall rural infrastructure.
These grants play a crucial role in strengthening the capacity of rural local bodies to deliver essential services efficiently. By providing both untied and tied financial resources, the government ensures that Panchayati Raj Institutions can address immediate community needs while also focusing on long-term infrastructure and sustainability projects.
The first instalment for FY 2025–26 marks the timely release of funds and reflects the Union Government’s commitment to empowering rural governance. With these resources, Sikkim’s rural local bodies can enhance service delivery, improve water and sanitation infrastructure, and foster participatory development at the village and district levels.
