February 28, 2026 : The Union Government has released Rs 275.1253 crore to strengthen Panchayati Raj Institutions and rural local bodies in Jharkhand under the 15th Finance Commission grants for the financial year 2025–26.
According to the Ministry of Panchayati Raj, the amount represents the second instalment of Untied Grants for FY 2024–25. The funds will benefit all eligible rural bodies in the state, including 24 District Panchayats, 253 Block Panchayats and 4,342 Gram Panchayats.
The 15th Finance Commission recommends grants to states for rural local bodies, which are released in two instalments each financial year. These grants are broadly divided into Untied and Tied categories.
Untied Grants allow local bodies to address location-specific needs based on local priorities. However, these funds cannot be used for salaries or other establishment expenses.
Tied Grants are meant for essential civic services. These include sanitation and maintaining open defecation-free status, as well as drinking water supply, rainwater harvesting and water recycling.
Earlier this month, the Centre released over Rs 137 crore to rural local bodies in Goa, Meghalaya, Sikkim and Uttarakhand for FY 2025–26.
In a separate release under the second instalment of the 15th Finance Commission’s Untied Grants, the Union Government also allocated more than Rs 3,324 crore to Bihar, Uttar Pradesh, Haryana, Himachal Pradesh and West Bengal.
Bihar received Rs 802 crore covering all 38 District Panchayats, 533 Block Panchayats and 8,053 Gram Panchayats. The state was also granted an additional Rs 1 crore from a previously withheld portion of the first instalment that has now been cleared.
Uttar Pradesh received Rs 1,559 crore for its 75 District Panchayats, 826 Block Panchayats and 57,694 Gram Panchayats. An additional Rs 11 crore was also released from a withheld amount that has since become eligible.
West Bengal was allocated Rs 680 crore for 21 District Panchayats, 335 Block Panchayats and 3,225 Gram Panchayats under the same instalment.
The continued release of Finance Commission grants is aimed at strengthening grassroots governance and improving the delivery of basic services in rural areas across states. – IANS
