Bhubaneswar: Odisha has been allocated Rs 240.8149 crore under the 15th Finance Commission (XV FC) Untied Grants for rural local bodies during the financial year 2025–26. The funds will cover 6,085 eligible Gram Panchayats and 63 Block Panchayats across the state, the Centre announced on Tuesday.
Alongside Odisha, Mizoram and Tripura have also received allocations. Mizoram has been granted Rs 14.27 crore for 827 eligible village councils as part of the 2023–24 grants, while Tripura has received Rs 29.75 crore for 606 Gram Panchayats, 35 Block Panchayats, 8 Zilla Parishads, 587 Village Committees and 40 Block Advisory Committees as the first installment for 2025–26.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the release of XV FC grants to strengthen rural local bodies and Panchayati Raj Institutions (PRIs). These grants are disbursed in two installments every financial year.
As per guidelines, Untied Grants are meant to be utilized for local, felt needs of rural areas but cannot be used for salaries or establishment costs. Tied Grants, on the other hand, are earmarked for sanitation, maintenance of ODF status, waste management, fecal sludge treatment, drinking water supply, rainwater harvesting, and water recycling.
Earlier in March, the Centre released Rs 436 crore as the second installment of XV FC grants to Karnataka and Tripura for 2024–25, aimed at strengthening grassroots governance and rural development. Last month, the Union Cabinet, chaired by Prime Minister Narendra Modi, also approved a total outlay of Rs 6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) during the current Finance Commission cycle from 2021–22 to 2025–26.
