Assam Rural Local Bodies Get Rs 299 Crore as 15th Finance Commission Grants

The Union Government has released Rs 256.60 crore as the second instalment of untied 15th Finance Commission grants for the financial year 2025-26 to rural local bodies in Assam. The funds will be distributed among all eligible 27 district panchayats, 182 block panchayats, 2,192 gram panchayats and three autonomous district councils—Bodoland Territorial Council, Karbi Anglong Autonomous Council and Dima Hasao Autonomous Council.

In addition to the second instalment, the Centre has also released Rs 42.70 crore that had been withheld from the first instalment of untied grants for FY 2025-26. This amount has now been released to the three autonomous district councils in the state.

Funds To Support Panchayats

The grants are aimed at strengthening local governance and enabling Panchayati Raj Institutions and rural local bodies to address location-specific development needs. All eligible districts, blocks, and gram panchayats in Assam, along with the three autonomous district councils, will receive their respective shares from the allocated funds.

The assistance forms part of the 15th Finance Commission’s fiscal transfers meant to enhance grassroots governance and improve service delivery in rural areas.

How Grants Are Released

The release of 15th Finance Commission grants to states for panchayati raj institutions and rural local bodies is recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti’s Department of Drinking Water and Sanitation. The funds are subsequently disbursed by the Ministry of Finance.

Under the current system, the grants allocated to states are released in two instalments within a financial year, ensuring phased financial support to rural governance institutions.

How Grants Can Be Utilised

Untied grants provided under the 15th Finance Commission framework can be used by panchayati raj institutions to address local needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or establishment expenses.

Tied grants, on the other hand, are earmarked for essential services such as sanitation and the maintenance of Open Defecation Free (ODF) status. These include management and treatment of household waste, human excreta and faecal sludge.

The tied funds can also be utilised for improving drinking water supply systems, rainwater harvesting infrastructure and water recycling initiatives in rural areas.