Centre releases over ₹2,400 crore XV Finance Commission grants to panchayats in Bihar, Himachal and UP
The Union Government released over ₹2,400 crore on 25 September 2025 as the first instalment of XV Finance Commission untied grants for 2025-26 to rural local bodies in Bihar, Himachal Pradesh and Uttar Pradesh.
Summary
The Union Government released the first instalment of untied grants under the XV Finance Commission for 2025-26 to rural local bodies in Bihar, Himachal Pradesh and Uttar Pradesh, as announced on 25 September 2025. Uttar Pradesh received ₹1,548.38 crore, Bihar ₹801.01 crore and Himachal Pradesh ₹67.96 crore â over ₹2,400 crore in all. 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. Untied grants can be used for local needs under the 29 subjects in the Eleventh Schedule of the Constitution, except salaries and establishment costs.
Key facts
- Announced
- 25 Sep 2025
- Grant
- 1st instalment, XV-FC untied grants, 2025-26
- Uttar Pradesh
- ₹1,548.38 crore
- Bihar
- ₹801.01 crore
- Himachal Pradesh
- ₹67.96 crore
- Use
- 29 subjects of the Eleventh Schedule; not salaries/establishment
- Released by
- Ministry of Finance, in 2 instalments a year
Practice MCQs 2 questions
Under the XV Finance Commission, untied grants to rural local bodies can be used for subjects listed in which Schedule of the Constitution?
Show answer
Correct answer: C â Eleventh Schedule
Untied grants can be used for location-specific needs under the 29 subjects in the Eleventh Schedule, except salaries and establishment costs.
Which state received the largest share of the XV Finance Commission untied grants released on 25 September 2025?
Show answer
Correct answer: B â Uttar Pradesh
Uttar Pradesh received ₹1,548.38 crore, Bihar ₹801.01 crore and Himachal Pradesh ₹67.96 crore.