SF Prep Notes

Centre releases over ₹3,324 crore of Fifteenth Finance Commission untied grants to panchayats in five states

The Union Government released over ₹3,324 crore as the second instalment of Fifteenth Finance Commission untied grants for 2025-26 to rural local bodies in Bihar, Haryana, Himachal Pradesh, Uttar Pradesh and West Bengal on 12 February 2026.

Summary

The Union Government released over ₹3,324 crore as the second instalment of Fifteenth Finance Commission (XV FC) untied grants for 2025-26 to Panchayati Raj Institutions in Bihar, Haryana, Himachal Pradesh, Uttar Pradesh and West Bengal, the Ministry of Panchayati Raj announced on 12 February 2026. Uttar Pradesh received the largest share, ₹1,559.40 crore for all 75 district panchayats, 826 block panchayats and 57,694 gram panchayats, followed by Bihar (₹802.40 crore), West Bengal (₹680.86 crore), Haryana (₹197.63 crore) and Himachal Pradesh (₹68.30 crore). Untied grants can be used for local needs under the 29 subjects in the Eleventh Schedule of the Constitution, except salaries and establishment costs. The grants are recommended by the Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation and released by the Ministry of Finance in two instalments a year.

Key facts

Date
12 February 2026
Amount
Over ₹3,324 crore (2nd instalment, 2025-26)
States
Bihar, Haryana, Himachal Pradesh, Uttar Pradesh, West Bengal
Largest share
Uttar Pradesh, ₹1,559.40 crore
Use
29 subjects of the Eleventh Schedule; not salaries
Released by
Ministry of Finance, in two instalments a year

Practice MCQs 2 questions

Q1 Advanced

Which state received the largest share of the ₹3,324 crore XV FC untied grants released on 12 February 2026?

Show answer

Correct answer: D — Uttar Pradesh

Uttar Pradesh received ₹1,559.40 crore for all 75 district panchayats, 826 block panchayats and 57,694 gram panchayats.

Q2 Advanced

Fifteenth Finance Commission untied grants to panchayats can be used for local needs under the subjects listed in which Schedule of the Constitution?

Show answer

Correct answer: A — Eleventh Schedule

Untied grants are used under the 29 subjects of the Eleventh Schedule, except salaries and establishment costs. The Twelfth Schedule lists municipal subjects.

← All current affairs