The Union Government has disbursed over ₹1,789 crore in 15th Finance Commission (XV-FC) Untied Grants to bolster rural local bodies and Panchayati Raj Institutions (PRIs) in five states: Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, and Maharashtra. These funds, part of the allocations for FY 2025–26 (with some relating to prior years), aim to enhance grassroots governance and address location-specific development priorities.
The Ministry of Panchayati Raj detailed the breakdowns as follows:
- Chhattisgarh received ₹232.60 crore as the second installment for its 33 District Panchayats, 146 Block Panchayats, and 11,693 Gram Panchayats, plus ₹8.02 crore from previously withheld portions of the first installment.
- Gujarat was allocated ₹509.21 crore as the second installment covering 33 District Panchayats, 247 Block Panchayats, and 14,563 Gram Panchayats, along with ₹14.64 lakh from withheld funds for additional Gram Panchayats.
- Madhya Pradesh got ₹630.64 crore as the first installment for 51 District Panchayats, 296 Block Panchayats, and 22,914 Gram Panchayats, supplemented by ₹104.65 crore in previously withheld funds.
- Telangana received ₹256.21 crore as the second installment for FY 2024–25, benefiting 12,702 Gram Panchayats.
- Maharashtra was provided ₹151.18 crore from withheld portions of earlier installments, supporting various district, block, and gram panchayats.
These untied grants offer flexibility for rural local bodies to fund development needs tailored to their areas, while excluding use for salaries or administrative expenses. In contrast, tied grants are specifically directed toward critical services like sanitation, sustaining open defecation-free status, solid and liquid waste management, drinking water supply, rainwater harvesting, and water recycling.