Centre releases ₹213.9 crore XV Finance Commission grants for rural local bodies in Assam
New Delhi: The Centre released ₹213.9 crore to support rural local bodies in Assam, marking the first instalment for the 2025–26 financial year, officials said on Monday.
The assistance covered 2,192 eligible Gram Panchayats, 182 Block Panchayats and 27 Zilla Parishads across the State. As a result, rural institutions can plan development works early in the financial year.
The Union Government issued the release based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti. Subsequently, the Ministry of Finance transferred the funds to the State.
Officials clarified that the Centre releases Finance Commission support in two instalments every year. Therefore, the current release represents the first tranche for 2025–26.
The untied component allows Panchayati Raj Institutions and rural local bodies to address local priorities. However, guidelines clearly bar the use of funds for salaries or establishment expenses.
XV Finance Commission grants to improve basic rural services
Authorities said rural institutions can use the XV Finance Commission grants for activities listed under the 29 subjects of the Eleventh Schedule of the Constitution. These include rural roads, sanitation facilities, drinking water systems and community infrastructure.
Meanwhile, the tied portion focuses on essential services. These include sanitation, maintenance of Open Defecation Free status and management of household waste. In addition, it covers treatment of human waste and fecal sludge.
The guidelines also permit spending on drinking water supply, rainwater harvesting and water recycling. Therefore, officials expect better public health outcomes and sustainable water use in villages.
Government officials said timely fund release strengthens decentralised governance. Moreover, it helps rural local bodies deliver services more efficiently.
They added that the support will improve planning, execution and monitoring of village-level works. Ultimately, officials said, the funding aims to raise living standards and strengthen grassroots institutions across rural Assam.
