New Delhi: The Union Government has released over ₹2,461 crore in grants under the XV Finance Commission (XV-FC) to strengthen rural local bodies across eight states, including Gujarat.

Gujarat has received ₹763.83 crore as the second instalment of tied grants for FY 2025–26. The allocation will benefit all 33 eligible District Panchayats (DPs), 247 Block Panchayats (BPs), and 14,563 Gram Panchayats (GPs) across the state. Additionally, a withheld portion of ₹7.338 lakh from the first instalment has also been released, extending coverage to two more eligible Gram Panchayats.

Release Details of State-wise Tied & Withheld Portions of Tied and Untied XV Finance Commission Grants during FY 2025–26:

*GPs/ BPs/ DPs – Gram Panchayats/ Block Panchayats/ District Panchayats

Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC grants to States for Rural Local Bodies which is then released by Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year. The Untied grants will be utilized by Panchayati Raj Institutions/ Rural Local Bodies for location-specific felt needs, under the Twenty-Nine subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The tied grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling, a press release said. DeshGujarat