₹94 Crore XV Finance Commission Grants Released for Uttarakhand PRIs | SMEStreet

The Union Government has released ₹94.236 crore under the Fifteenth Finance Commission (XV FC) during the Financial Year 2025–26 for Rural Local Bodies (RLBs) and Panchayati Raj Institutions (PRIs) in Uttarakhand, providing a significant boost to grassroots governance and rural infrastructure in the state.

The latest disbursement includes the second instalment of Untied Grants for FY 2024–25, amounting to ₹9,410.03 lakh, benefiting all 13 District Panchayats, 95 Block Panchayats, and 7,784 Gram Panchayats across Uttarakhand. In addition, an amount of ₹13.60 lakh has been released towards the withheld portion of the first instalment of Untied Grants for FY 2024–25 for 15 newly eligible Gram Panchayats.

Focus on Local Development and Essential Services

The XV Finance Commission grants for RLBs and PRIs are recommended jointly by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and are released by the Ministry of Finance in two instalments each financial year.

The Untied Grants are designed to empower local self-governments to address location-specific developmental priorities under the 29 subjects listed in the Eleventh Schedule of the Constitution. These funds, however, cannot be used for salaries or establishment-related expenditures, ensuring that resources are directed strictly towards development activities.

Tied Grants for Sanitation and Drinking Water

In contrast, Tied Grants under the XV Finance Commission are earmarked for improving basic civic services, particularly:

• Sanitation and maintenance of Open Defecation Free (ODF) status

• Management and treatment of household waste, human excreta, and fecal sludge

• Drinking water supply, rainwater harvesting, and water recycling initiatives

Strengthening Rural Economy and Governance

The timely release of XV Finance Commission grants is expected to enhance rural infrastructure, improve service delivery at the grassroots level, and generate local employment opportunities, especially for rural MSMEs engaged in sanitation, water management, construction, and allied services.

This financial support reinforces the Government of India’s commitment to decentralised governance, sustainable rural development, and inclusive economic growth, particularly in ecologically sensitive hill states like Uttarakhand.