The Union Government has released XV Finance Commission (XV FC) grants for Rural Local Bodies (RLBs), disbursing over ₹342 crore to Tamil Nadu and Assam for the ongoing financial years, officials announced.
For Tamil Nadu, the first installment of untied grants for FY 2025–26 amounts to ₹127.586 crore, covering 2,901 eligible Gram Panchayats, 74 eligible Block Panchayats, and nine District Panchayats. Assam has received ₹214.542 crore as part of its FY 2024–25 allocation, benefiting all 2,192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 Zilla Parishads.
Gratitude to the Union Govt led by Adarniya Shri @narendramodi ji for releasing ₹214.542cr towards strengthening Assam’s rural local bodies and improving drinking water, sewage & cleanliness in rural areas.
This will greatly boost our ongoing rural development efforts. pic.twitter.com/0slSc57rAO
— Himanta Biswa Sarma (@himantabiswa) September 17, 2025
According to the Ministry of Panchayati Raj, the grants are released by the Ministry of Finance in two installments each financial year, based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti.
The untied portion of the grants allows Panchayati Raj Institutions (PRIs) to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. In contrast, tied grants are earmarked for sanitation, waste management, maintenance of open defecation-free (ODF) status, and water supply initiatives such as drinking water provision, rainwater harvesting, and water recycling.
Officials said the latest release is expected to strengthen grassroots governance, enhance service delivery, and improve basic rural infrastructure in both states.
