Centre releases over ₹1,789 crore of XV Finance Commission grants to rural local bodies in five states
The Ministry of Panchayati Raj announced on 17 March 2026 that the Centre has released over ₹1,789 crore of Fifteenth Finance Commission untied grants to rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana and Maharashtra.
Summary
Fifteenth Finance Commission (XV-FC) untied grants of over ₹1,789 crore were released by the Union Government to Panchayati Raj Institutions in Chhattisgarh, Gujarat, Madhya Pradesh, Telangana and Maharashtra, the Ministry of Panchayati Raj said on 17 March 2026. Madhya Pradesh received ₹630.65 crore as its first instalment plus ₹104.66 crore of withheld amounts; Gujarat got ₹509.22 crore, Telangana ₹256.21 crore, Chhattisgarh ₹232.60 crore (plus ₹8.02 crore withheld) and Maharashtra ₹151.19 crore of withheld instalments. Untied grants can be used for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution, except salaries and establishment costs. The Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation recommend the release, which the Ministry of Finance then makes in two instalments a year.
Key facts
- Announced
- 17 March 2026, Ministry of Panchayati Raj
- Total
- Over ₹1,789 crore
- States
- Chhattisgarh, Gujarat, Madhya Pradesh, Telangana, Maharashtra
- Largest
- Madhya Pradesh: ₹630.65 crore + ₹104.66 crore withheld
- Use
- 29 subjects of the Eleventh Schedule; not salaries
- Released by
- Ministry of Finance, two instalments a year
Practice MCQs 2 questions
Untied grants of the Fifteenth Finance Commission released to rural local bodies can be used for the subjects listed in which Schedule of the Constitution?
Show answer
Correct answer: B — Eleventh Schedule
Untied grants are used for location-specific felt needs under the 29 subjects of the Eleventh Schedule, except salaries and establishment costs.
Consider the following about the XV-FC grants announced on 17 March 2026: 1. Madhya Pradesh received the largest first-instalment release among the five states. 2. The grants are released directly by the Ministry of Panchayati Raj without any role of the Ministry of Finance. Which of the above is/are correct?
Show answer
Correct answer: A — 1 only
Statement 1 is correct (₹630.65 crore for MP). Statement 2 is wrong: the Ministry of Panchayati Raj and DDWS recommend the release, which is then made by the Ministry of Finance.