Centre Releases ₹4,383 Crore to PRIs Under XV-FC Grants

On 24th March 2026, the Union Government disbursed ₹4,383.98 crore as 15th Finance Commission (XV-FC) grants to Panchayati Raj Institutions (PRIs) in Bihar, Uttar Pradesh, Jharkhand, and Maharashtra to strengthen rural local governance.

Key Points

Total Allocation: ₹4,383.98 crore released as both tied and untied grants for FY 2025-26 (including pending instalments of previous years).
State-wise Distribution:
- Bihar: ₹1,203.60 crore + ₹2.09 crore (withheld portion).
- Uttar Pradesh: ₹2,339.10 crore + ₹16.52 crore (withheld portion).
- Jharkhand: ₹412.69 crore.
- Maharashtra: Multiple instalments of tied and untied grants released from earlier years.
Beneficiaries: District Panchayats (DPs), Block Panchayats (BPs), and Gram Panchayats (GPs) across the 4 states.
Tied Grants Usage:
- Sanitation and maintenance of ODF status.
- Waste management and faecal sludge treatment.
- Drinking water supply, rainwater harvesting, and water recycling.
Untied Grants Usage:
- Flexible spending for local needs.
- Covers 29 subjects under the 11th Schedule of the Constitution.
- Cannot be used for salaries or establishment expenses.
Institutional Mechanism:
- Recommended by Ministry of Panchayati Raj & Ministry of Jal Shakti.
- Released by Ministry of Finance in two instalments annually.
Significance:
- Strengthens grassroots democracy and decentralised governance.
- Enhances rural infrastructure and service delivery.
- Supports sanitation, water security, and local development priorities.