Centre Releases ₹1,142 Crore to Strengthen Rural Local Bodies Across Four States
New Delhi, March 25, 2026 – The Centre has released over ₹1,142 crore to strengthen rural local bodies in Madhya Pradesh, Jharkhand, Punjab, and Mizoram for FY 2025–26 under the 15th Finance Commission’s untied grants.For Madhya Pradesh, a total of ₹631.91 crore has been released as the second installment of untied grants for 51 district panchayats, 300 block panchayats, and 22,933 gram panchayats. Additionally, ₹1.26 crore of withheld funds from the first installment has also been disbursed to select panchayats.
In Jharkhand, the government released ₹269.03 crore as the first installment for FY 2025–26, benefiting 23 district panchayats, 264 block panchayats, and 4,344 gram panchayats. An additional ₹3.65 crore from withheld funds of previous installments (FY 2024–25) has also been released.
For Punjab, ₹222 crore has been allocated as the second installment, covering 13,262 gram panchayats, 150 block panchayats, and all 22 district panchayats.
In Mizoram, the Centre released ₹14.80 crore as the second installment for 816 eligible Village Councils.
These funds are released based on recommendations by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and are disbursed by the Ministry of Finance in two installments annually.
Untied grants allow panchayati raj institutions to address location-specific needs across the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs.
Meanwhile, tied grants are designated for essential services such as sanitation, maintaining open defecation-free (ODF) status, waste management, drinking water supply, rainwater harvesting, and water recycling.
The initiative aims to strengthen grassroots governance, rural infrastructure, and service delivery across states.
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