Centre Releases ₹275.12 Cr XV-FC Grants to Jharkhand PRIs and RLBs

The Union Government has released ₹275.1253 crore to Jharkhand under the Fifteenth Finance Commission (XV-FC) grants for FY 2025–26, aimed at strengthening Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) across the State.

The funds constitute the second installment of Untied Grants for FY 2024–25 and will benefit all eligible 24 District Panchayats, 253 Block Panchayats and 4,342 Gram Panchayats in Jharkhand.

Boost to Grassroots Governance

The grants are part of the Centre's ongoing effort to empower local self-governments with financial resources to address community-specific development needs.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV-FC grants to States for Rural Local Bodies, following which the Ministry of Finance disburses the funds.

Under the XV-FC framework, grants are released in two installments each financial year.

Untied Grants for Local Priorities

The Untied Grants provide flexibility to PRIs and RLBs to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution.

These may include sectors such as:

• Agriculture and land improvement

• Minor irrigation and water management

• Rural housing

• Roads and infrastructure

• Health and sanitation

• Social welfare and community development

However, the funds cannot be used for salaries or establishment-related expenses.

Focus on Sanitation and Water Services

Alongside Untied Grants, Tied Grants under the XV-FC framework are earmarked for critical basic services, including:

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

• Household waste management

• Treatment of human excreta and faecal sludge

• Drinking water supply

• Rainwater harvesting

• Water recycling

These allocations are intended to ensure sustainable rural infrastructure and improved public health outcomes.

Strengthening Decentralised Development

The latest release reinforces the Centre's commitment to decentralised governance and rural development by equipping Panchayati Raj Institutions with predictable fiscal support.

Officials said the funds will enable local bodies in Jharkhand to undertake development works tailored to grassroots needs while maintaining a strong focus on sanitation, water security and community well-being.