The Union Government has disbursed more than ₹444 crores as part of the Fifteenth Finance Commission (XV FC) Grants to strengthen Rural Local Bodies (RLBs) in Odisha for the Financial Year 2025–26.
This funding aims to empower Panchayati Raj Institutions (PRIs) and RLBs in addressing local needs and essential services.
The release comprises the second instalment of Untied Grants totalling ₹342.5964 crores, allocated to 20 eligible District Panchayats (Zilla Parishads), 296 eligible Block Panchayats (Panchayat Samitis), and 6,734 eligible Gram Panchayats across the state. In addition, ₹101.7815 crores—representing the withheld portion of the first instalment of United Grants for the same fiscal year—has been released to 20 eligible Zilla Parishads, 233 eligible Panchayat Samitis, and 649 eligible Gram Panchayats.
These grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), with the Ministry of Finance handling the actual disbursement in two instalments each financial year.
Untied Grants provide flexibility to PRIs and RLBs, allowing them to utilise funds for location-specific requirements under the 29 subjects outlined in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or establishment costs. On the other hand, Tied Grants are specifically earmarked for critical services, including sanitation and waste management, maintenance of Open Defecation Free (ODF) status, drinking water supply, rainwater harvesting, and water recycling initiatives.
This financial support is expected to enhance grassroots governance and sustainable development in Odisha’s rural areas, aligning with the government’s commitment to decentralising resources for local empowerment.
