The Union government has released over ₹1,133 crores as Fifteenth Finance Commission (FFC) grants for financial year 2025-26 to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Punjab, Madhya Pradesh and Telangana.
Of this, an amount of ₹222 crore has been released by the central government to Punjab as the first instalment of untied grants for the current fiscal year, according to a Press Information Bureau release. These funds will support all 13,262 eligible gram panchayats, 150 eligible block panchayats and 22 eligible district panchayats across the state.
In Madhya Pradesh, it released ₹652.55 crore as the second instalment of untied grants for FY 2024-25, while for the state of Telangana, a sum of ₹256 crore has been released as the first instalment of untied grants for FY 2024-25, benefiting 12,702 eligible gram panchayats.
The central government through the ministry of panchayati raj and ministry of jal shakti (department of drinking water and sanitation) recommends release of the FFC grants to states for rural local bodies, which is then released by the ministry of finance. The allocated grants are recommended and released in two instalments in a financial year. The untied grants are to be utilised by PRIs and RLBs for location-specific felt needs.