SF Prep Notes

₹512.27 crore XV Finance Commission grants released to Gujarat's rural local bodies

The Centre released ₹512.27 crore of Fifteenth Finance Commission grants for rural local bodies in Gujarat for FY 2025-26, announced on 21 January 2026.

Summary

The release includes the first instalment of Untied Grants for FY 2025-26, ₹509.07 crore, for 14,561 eligible Gram Panchayats, 247 Block Panchayats and all 33 District Panchayats in Gujarat. Another ₹3.20 crore, the withheld portion of FY 2024-25 untied grants, went to 47 more Gram Panchayats and one Block Panchayat. The Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation recommend the releases, which the Finance Ministry makes in two instalments a year. Untied Grants can be used for location-specific needs under the 29 subjects in the Eleventh Schedule of the Constitution, but not for salaries or establishment costs.

Key facts

Total released
₹512.27 crore (FY 2025-26)
Untied grants, 1st instalment
₹509.07 crore
Beneficiaries
14,561 GPs, 247 Block Panchayats, 33 District Panchayats
Instalments
2 per financial year
Untied grant use
29 subjects of the Eleventh Schedule; not salaries
Released by
Ministry of Finance, on recommendation of MoPR and DDWS

Practice MCQs 3 questions

Q1

How much Fifteenth Finance Commission grant was released to rural local bodies in Gujarat, as announced on 21 January 2026?

Show answer

Correct answer: A — ₹512.27 crore

PIB (Panchayati Raj): ₹512.27 crore was released for Gujarat's rural local bodies for FY 2025-26.

Q2 Advanced

Untied Grants to Panchayati Raj Institutions may be used for location-specific needs under the subjects listed in which Schedule of the Constitution?

Show answer

Correct answer: D — Eleventh Schedule

PIB (Panchayati Raj): Untied Grants are used under the 29 subjects in the Eleventh Schedule, except salaries and establishment costs.

Q3 Advanced

Consider the following statements about XV Finance Commission grants to rural local bodies: 1. They are released in two instalments in a financial year. 2. Untied Grants can be used to pay salaries of panchayat staff. 3. The Ministry of Finance releases the grants on the recommendation of the Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation. Which of the statements given above are correct?

Show answer

Correct answer: B — 1 and 3 only

PIB (Panchayati Raj): grants are released in two instalments a year by the Finance Ministry on MoPR/DDWS recommendation; Untied Grants cannot be used for salaries and establishment costs.

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