The Government of India has released ₹1,091.47 crore as the first instalment of untied grants for rural local bodies in West Bengal and Andhra Pradesh. The Ministry of Panchayati Raj announced this on Thursday.
The Ministry of Panchayat Raj sanctioned the funds under the Fifteenth Finance Commission (FFC) for the financial year 2025–26. They aim to strengthen local governance and improve service delivery in rural areas.
₹410.76 crore granted to Andhra Pradesh panchayats
The Union government has also sanctioned ₹410.76 crore to Andhra Pradesh. This will benefit 13 Zilla Praja Parishads, 650 Mandal Praja Parishads, and 13,092 Gram Panchayats.
The untied grants allow local bodies to fund location-specific development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. Salary and establishment costs are excluded. Of the total amount, ₹680.71 crore has been released to West Bengal for 3,224 Gram Panchayats, 335 Block Panchayats, and 21 Zilla Parishads.
During 2024–25 and 2025–26, the state has received a combined ₹4,181.23 crore. This includes ₹2,082.13 crore as untied grants and ₹2,099.10 crore as tied grants. The funds underline the Centre’s continued commitment to strengthen grassroots institutions. They enable Panchayats to deliver essential public services effectively.
Focus on sanitation and water management
The Central government earmarked the tied grants for essential services such as sanitation, ODF (Open Defecation-Free) maintenance, solid waste management, and drinking water supply. They may also utilize the funds for rainwater harvesting, water recycling, and fecal sludge management. This promotes sustainable rural infrastructure.
The Ministry of Panchayati Raj is complementing financial support with digital innovations to boost transparency and efficiency.
New tools include, SabhaSaar, an AI-powered platform for recording and summarising Gram Sabha proceedings. There is also SVAMITVA, a project for digital land mapping and property rights. Additionally, eGramSwaraj integrates planning, accounting, and monitoring for Panchayats. Gram Manchitra, a geo-spatial planning platform, assists in data-driven decision-making.
These initiatives empower citizens, enhance accountability, and promote digital governance at the village level.
Strengthening Aatmanirbhar Bharat through local empowerment
The continuous flow of Finance Commission grants and tech-driven initiatives reflects India’s broader Aatmanirbhar Bharat vision, ensuring self-reliant rural governance. By enabling Panchayats to plan and execute development projects independently, the government aims to deepen participatory democracy at the grassroots.
