Centre releases ₹444 crore XV Finance Commission grants to Odisha’s Rural Local Bodies
As per guidelines, Untied Grants can be utilized by Panchayati Raj Institutions (PRIs) and RLBs for local development works under the 29 subjects listed in the Eleventh Schedule, excluding establishment and salary expenses.
New Delhi, November 4: The Union Government on Monday released more than ₹444 crore to Odisha under the Fifteenth Finance Commission (XV FC) grants for rural local bodies (RLBs) for the financial year 2025–26.
The release includes the second installment of Untied Grants worth ₹342.59 crore for 20 Zilla Parishads, 296 Panchayat Samitis, and 6,734 Gram Panchayats across the state. In addition, ₹101.78 crore—representing the withheld portion of the first installment of Untied Grants—has been released to 20 Zilla Parishads, 233 Panchayat Samitis, and 649 Gram Panchayats.
The funds were recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and released by the Ministry of Finance. These grants are provided in two installments each financial year to support the functioning of local self-governments.
As per guidelines, Untied Grants can be utilized by Panchayati Raj Institutions (PRIs) and RLBs for local development works under the 29 subjects listed in the Eleventh Schedule, excluding establishment and salary expenses. Tied Grants, meanwhile, are earmarked for essential services such as sanitation, solid and liquid waste management, drinking water supply, rainwater harvesting, and water recycling.
The release of funds is expected to strengthen grassroots governance, improve service delivery, and enhance rural infrastructure across Odisha.
