Centre releases Rs 219.24 crore finance commission grants for rural bodies in Assam

The Union Government has released the Fifteenth Finance Commission (XV FC) grants for Rural Local Bodies in Assam for the financial year 2025–26, marking a significant boost to grassroots development across the state. 

The latest disbursement includes the second installment of Untied Grants for 2024–25 amounting to Rs 219.24 crore. These funds will be allocated to all eligible 27 District Panchayats, 182 Block Panchayats, and 2,192 Gram Panchayats in Assam.

In addition to this, the Centre has also released Rs 4.698 crore that had earlier been withheld from the first installment of Untied Grants for 2024–25. This amount has now been cleared for 26 Block Panchayats found additionally eligible after verification.

According to the government, the release of XV Finance Commission grants for Panchayati Raj Institutions and Rural Local Bodies is recommended jointly by the Ministry of Panchayati Raj and the Ministry of Jal Shakti’s Department of Drinking Water and Sanitation. The Ministry of Finance subsequently issues the funds in two installments each financial year.

The Untied Grants are intended for location-specific developmental needs identified by Panchayati Raj Institutions under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment expenditures. These flexible funds empower local bodies to address grassroots priorities such as infrastructure gaps, local roads, community assets, and welfare needs.

Meanwhile, Tied Grants under the XV Finance Commission continue to support essential services, including sanitation, maintaining ODF status, managing household waste and fecal sludge, and ensuring sustainable drinking water supply. They can also be used for rainwater harvesting and water recycling initiatives.

With the latest release, the Union Government aims to strengthen rural governance, expand basic service delivery, and accelerate village-level development across Assam.