Centre releases Rs 730 cr grants to boost rural governance in Gujarat, Haryana

The Union Government has released over Rs 730 crore XV Finance Commission (XV FC) Grants during the Financial Year 2025–26 to strengthen Rural Local Bodies (RLBs) in Gujarat and Haryana.

In Gujarat, the 2nd installment of Untied Grants for the Financial Year 2024–25 amounting to Rs 522.20 crore has been released for all 38 District Panchayats, 247 eligible Block Panchayats, and 14,547 eligible Gram Panchayats of the state.

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“Further Rs 13.5989 crore of the withheld portion of the 1st installment of Untied Grants for FY 2024–25 has also been released to additionally eligible 6 District Panchayats, 5 Block Panchayats and 78 Gram Panchayats,” the Ministry of Panchayati Raj said on Tuesday.

While for the state of Haryana, the Union Government has released the 1st installment of Untied Grants for FY 2025–26 amounting to Rs 195.129 crore for 18 District Panchayats, 134 eligible Block Panchayats, and 6,164 Gram Panchayats of the state.

The Government of India, through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC Grants to states for Panchayati Raj Institutions/Rural Local Bodies, which are then released by the Ministry of Finance.

The allocated grants are recommended and released in two installments in a financial year. The Untied Grants will be utilised by PRIs/RLBs for location-specific felt needs under the Twenty-Nine (29) 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,” the Ministry said.