New Delhi: The Union government released ₹224.57 crore under XV Finance Commission grants for Panchayati Raj Institutions and rural local bodies in Chhattisgarh for the financial year 2025–26.
The amount represents the first instalment of untied grants for the year. As a result, 11,279 Gram Panchayats, 138 Block Panchayats and 26 District Panchayats will receive direct financial support.
According to officials, the Ministry of Panchayati Raj and the Ministry of Jal Shakti jointly recommended the release. Subsequently, the Ministry of Finance disbursed the funds. Under the approved framework, the Centre releases the allocation in two instalments every financial year.
The untied nature of the grants gives local bodies greater flexibility. Therefore, Panchayati Raj Institutions can address location-specific development needs based on local priorities. However, the funds cannot be used for salaries or establishment-related expenses.
Officials said the grants would help strengthen decentralised governance. Moreover, they would improve the planning capacity of elected rural bodies. In addition, the funding would accelerate execution of small but critical infrastructure works.
Grants to strengthen sanitation and drinking water services
Apart from untied funds, the Finance Commission framework also includes tied grants. These funds must support essential civic services. Specifically, local bodies can use them for sanitation and maintenance of Open Defecation Free status.
In addition, the tied grants support scientific management of household waste and faecal sludge. They also allow investments in drinking water supply, rainwater harvesting and water recycling projects. As a result, villages can improve both public health and environmental sustainability.
Officials said timely fund release would help Panchayats plan works before the peak working season. Meanwhile, district administrations have been asked to ensure proper utilisation and monitoring.
The Centre said the release of XV Finance Commission grants would empower grassroots institutions. Furthermore, it would improve service delivery in rural and tribal areas of Chhattisgarh. The government added that stronger Panchayats remain key to inclusive rural development.