Bhubaneswar: The Union government has released a portion of withheld funds under the Fifteenth Finance Commission (XV-FC) grants to rural local bodies in Odisha during the financial year 2025-26, providing a financial boost to Panchayati Raj Institutions across the state.
According to official details, Odisha has received Rs 35.09 crore under the untied grant component, which pertains to the withheld portion of the first and second instalments for FY 2025-26.
The release will benefit additional eligible local bodies in the State, including 10 District Panchayats, 17 Block Panchayats, and 40 Gram Panchayats for both instalments, along with 15 Gram Panchayats for the second instalment, the Ministry of Panchayati Raj said in a release.
The Union government has also released XV-FC tied grants to several other states, while clearing withheld portions of both tied and untied grants for Himachal Pradesh, Sikkim, and Tripura.
The grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and are subsequently released by the Ministry of Finance.
Untied grants are meant to support location-specific developmental needs of rural local bodies under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, these funds can’t be used for salaries or establishment-related expenses.
The release is expected to strengthen grassroots governance and support development initiatives at the village and block levels in Odisha.
