Union Government Releases 15th Finance Commission Grants for Rural Local Bodies in 2025–26

The Union Government has released 15th Finance Commision grants for Rural Local Bodies during financial year 2025–26, disbursing the st installment of united grants amounting to rupees 127.586 crores for Tamil Nadu of the financial year 2025-26 (covering 2901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District Panchayats).

Also rupees 214.542 crores for Assam of the financial year 2025-26 (covering all 2192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads).

Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of 15th finance commission grants to States for Rural Local Bodies (RLBs)-Panchayati Raj Institutions (PRIs), which are released by Ministry of Finance. 

The allocated grants are recommended and released in two installments in a financial year. While the United Grants will be utilized by RLBs-PRIs for location-specific felt needs, under the Twenty-Nine subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs.The tied Grants can be used for the basic services of

(i) Sanitation and maintenance of Open Defecation Free status(ODF) and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and 

(ii) Supply of drinking water, rainwater harvesting and water recycling.

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