Centre Releases ₹1091 Crore Under XV FC to Strengthen Panchayati Raj Institutions in Andhra Pradesh and West Bengal
The grants, both tied and untied, have become instrumental in improving rural infrastructure, sanitation standards, and drinking water access, aligning with the objectives of Swachh Bharat Mission (Grameen) and Jal Jeevan Mission.
Funds under Fifteenth Finance Commission aim to boost rural development, sanitation, and drinking water infrastructure
New Delhi, October 9: The Union Government on Thursday released over ₹1,091 crore as the first instalment of Untied Grants under the Fifteenth Finance Commission (XV FC) to strengthen Panchayati Raj Institutions (PRIs) in Andhra Pradesh and West Bengal, reaffirming its commitment to empowering grassroots governance across rural India.
According to official data, Andhra Pradesh received ₹410.76 crore, while West Bengal received ₹680.71 crore as part of the 2025–26 financial year allocations.
Funds to Empower Local Governance
In Andhra Pradesh, the released funds will benefit all 13 Zilla Praja Parishads (district panchayats), 650 Mandal Praja Parishads (block panchayats), and 13,092 Gram Panchayats (village panchayats) out of 13,327 eligible units. The grants—classified as “Untied”—allow PRIs to take up location-specific development works under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding establishment or salary expenses.
Meanwhile, West Bengal’s allocation covers 3,224 Gram Panchayats, 335 Block Panchayats, and 21 Zilla Parishads, strengthening local self-governance across the state.
The Untied Grants provide rural local bodies with flexibility to address local needs such as rural roads, street lighting, playfields, waste management, digital connectivity, and environmental protection.
In contrast, Tied Grants—released separately—are earmarked for critical public services such as sanitation, maintenance of Open Defecation Free (ODF) status, and provision of safe drinking water through rainwater harvesting, water recycling, and wastewater management.
Continuous Flow of Finance to PRIs
During the last and current financial years (2024–25 and 2025–26), West Bengal alone has received a cumulative ₹4,181.23 crore, including ₹2,082.13 crore as Untied Grants and ₹2,099.10 crore as Tied Grants. Andhra Pradesh’s grant continues the Centre’s periodic fund flow to states based on performance and eligibility under the Finance Commission’s formula for devolution.
These timely disbursals are aimed at helping local bodies improve service delivery, infrastructure, and participatory planning at the grassroots level—key elements of India’s rural development vision under the “Gram Vikas, Bharat Vikas” approach.
Driving Decentralised Development
The Ministry of Panchayati Raj in a statement said that the XV Finance Commission’s recommendations are central to strengthening decentralised governance and empowering PRIs to function as vibrant units of self-government. The grants, both tied and untied, have become instrumental in improving rural infrastructure, sanitation standards, and drinking water access, aligning with the objectives of Swachh Bharat Mission (Grameen) and Jal Jeevan Mission.
The latest release underscores the Centre’s commitment to ensuring that rural local bodies not only have financial resources but also institutional autonomy to implement people-centric development programmes, it added.
