SF Prep Notes

Centre releases over ₹1,133 crore of Fifteenth Finance Commission grants to panchayats in MP, Punjab and Telangana

The Union Government released over ₹1,133 crore of Fifteenth Finance Commission (XV FC) grants to rural local bodies in Madhya Pradesh, Punjab and Telangana, the Panchayati Raj Ministry said on 6 February 2026.

Summary

The Ministry of Panchayati Raj said on 6 February 2026 that the Centre has released over ₹1,133 crore of Fifteenth Finance Commission grants during 2025–26 to Panchayati Raj Institutions in three states. Madhya Pradesh received ₹652.55 crore as the second instalment of Untied Grants for 2024–25, covering 52 district panchayats, 312 block panchayats and 23,001 gram panchayats. Punjab received ₹222 crore as the first instalment for 2025–26, and Telangana ₹256.03 crore as the first instalment for 2024–25. The Panchayati Raj and Jal Shakti ministries recommend the grants, which the Finance Ministry releases in two instalments a year. The Finance Commission is constituted by the President under Article 280 of the Constitution, which also asks it to recommend measures to augment a state's Consolidated Fund to supplement the resources of panchayats.

Key facts

Announced
6 February 2026
Total
Over ₹1,133 crore
Madhya Pradesh
₹652.55 crore (2nd instalment, 2024–25)
Punjab
₹222 crore (1st instalment, 2025–26)
Telangana
₹256.03 crore (1st instalment, 2024–25)
Finance Commission
Article 280; Chairman + four members; Art. 280(3)(bb) on panchayat resources

Practice MCQs 2 questions

Q1

The XV FC grants of over ₹1,133 crore announced on 6 February 2026 went to panchayats in which three states?

Show answer

Correct answer: D — Madhya Pradesh, Punjab and Telangana

The grants were released to Madhya Pradesh, Punjab and Telangana.

Q2 Advanced

Consider the following about the Finance Commission under Article 280 of the Constitution: 1. It consists of a Chairman and four other members appointed by the President. 2. It recommends measures to augment a state's Consolidated Fund to supplement the resources of panchayats, based on the State Finance Commission's recommendations. Which of the above is/are correct?

Show answer

Correct answer: C — Both 1 and 2

Both are correct: Article 280(1) provides for a Chairman and four other members, and Article 280(3)(bb) covers measures to supplement panchayat resources.

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