Centre releases XV Finance Commission grants worth ₹723 crore for Rajasthan and Jharkhand
New Delhi: The Union Government released more than ₹723 crore as XV Finance Commission grants to strengthen Panchayati Raj Institutions and rural local bodies in Rajasthan and Jharkhand during the financial year 2025–26.
In Rajasthan, the Centre released the first instalment of untied grants for 2025–26 amounting to ₹303.04 crore. The funds will benefit 24 district panchayats, 339 block panchayats and 3,857 gram panchayats across the state. In addition, the government released ₹145.24 crore from the withheld portion of the first and second instalments of untied grants for 2024–25 to newly eligible rural local bodies.
For Jharkhand, the Union Government released the first instalment of untied grants for 2024–25 amounting to ₹275.13 crore. The assistance will cover all 24 district panchayats, 253 eligible block panchayats and 4,342 eligible gram panchayats in the state.
Officials said the Ministry of Panchayati Raj and the Ministry of Jal Shakti recommended the release of XV Finance Commission grants, which the Ministry of Finance subsequently disbursed. The Centre releases these grants in two instalments every financial year based on eligibility conditions.
Grants aimed at strengthening local governance and basic services
The government said rural local bodies will use untied grants to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, the rules prohibit spending the funds on salaries or establishment-related expenses.
At the same time, authorities earmarked tied grants for essential civic services. These include sanitation, maintenance of open defecation-free status and management of household waste and faecal sludge. In addition, the grants support drinking water supply, rainwater harvesting and water recycling initiatives.
Officials said the timely release of XV Finance Commission grants would help improve service delivery at the grassroots level. They added that the funding aimed to strengthen rural governance and ensure better living conditions in villages across Rajasthan and Jharkhand.
