Major Allocations Across Five States
Bihar has received ₹802.40 crore under the untied grants component, covering all 38 District Panchayats, 533 Block Panchayats, and 8,053 Gram Panchayats. Additionally, ₹1.39 crore from a previously withheld portion has been released to newly eligible local bodies.
Haryana has been allocated ₹197.63 crore benefiting 19 District Panchayats, 138 Block Panchayats, and 6,194 Gram Panchayats. An extra ₹2.50 crore was released to local bodies that recently met eligibility requirements.
Himachal Pradesh received ₹68.30 crore for its 12 District Panchayats, 80 eligible Block Panchayats, and 3,602 Gram Panchayats. An additional ₹0.35 crore has been disbursed to newly qualified Gram Panchayats.
Uttar Pradesh secured the largest share at ₹1,559.40 crore, covering all 75 District Panchayats, 826 Block Panchayats, and 57,694 Gram Panchayats. A further ₹11.02 crore from withheld funds was released to newly eligible institutions.
West Bengal received ₹680.86 crore for eligible 21 District Panchayats, 335 Block Panchayats, and 3,225 Gram Panchayats.
Strengthening Grassroots Governance
The grants are part of the Fifteenth Finance Commission recommendations to promote fiscal decentralization and enhance local governance capacity. The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of these funds, which are subsequently disbursed by the Ministry of Finance.
The untied grants allow Panchayati Raj Institutions to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or establishment expenses.
Focus on Basic Services and Sanitation
Alongside untied grants, tied grants are earmarked for critical basic services. These include sanitation initiatives, maintaining Open Defecation Free (ODF) status, management of household waste, fecal sludge treatment, and strengthening drinking water infrastructure.
Local bodies can also utilize tied grants for rainwater harvesting and water recycling projects. This integrated approach aims to improve rural sanitation and water management systems sustainably.
Driving Inclusive Rural Development
The timely release of funds ensures uninterrupted development activities at the village and district levels. By empowering Panchayati Raj Institutions financially, the Centre aims to deepen participatory governance and enhance service delivery in rural India.
The Finance Commission grants have become a vital instrument in supporting decentralized planning and execution. With transparent eligibility norms and performance-linked disbursement, the system encourages accountability and efficiency.
