Centre Releases ₹342.59 Crore Second Installment of XV Finance Commission Grants for Rural Local Bodies in Odisha

Bhubaneswar: The Union Government has released the Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies (RLBs) in Odisha for the Financial Year 2025–26, marking another boost to strengthen local governance and rural infrastructure across the state.

The release includes the second installment of Untied Grants amounting to ₹342.5964 crore, benefiting 20 eligible District Panchayats (Zilla Parishads), 296 eligible Block Panchayats (Panchayat Samitis), and 6,734 eligible Gram Panchayats across Odisha.

In addition, the Centre has also released ₹101.7815 crore, representing the withheld portion of the first installment of Untied Grants for FY 2025–26. This amount will reach 20 eligible Zilla Parishads, 233 eligible Panchayat Samitis, and 649 eligible Gram Panchayats, further supporting grassroots development efforts.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) jointly recommend the release of XV Finance Commission Grants to the States for Panchayati Raj Institutions (PRIs) and Rural Local Bodies. The Ministry of Finance disburses these grants in two installments during each financial year, ensuring continuity of developmental activities at the local level.

Untied Grants give PRIs and RLBs the flexibility to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution — excluding expenditure on salaries and establishment costs. These funds empower local bodies to plan and implement initiatives based on community priorities such as infrastructure, livelihood, and local resource management.

Meanwhile, Tied Grants are allocated for core services like sanitation, waste management, and maintenance of Open Defecation Free (ODF) status, as well as drinking water supply, rainwater harvesting, and water recycling projects.