New Delhi: The Union government has released over Rs444 crore to Odisha under the 15th Finance Commission (XV FC) Grants for Rural Local Bodies (RLBs) for the financial year 2025–26.
According to a press release from pib.gov.in, the allocation includes the second installment of Untied Grants worth Rs342.5964 crore for 20 district panchayats (Zilla Parishads), 296 block panchayats (Panchayat Samitis), and 6,734 gram panchayats across the state.
In addition, the Centre has released Rs101.7815 crore – the withheld portion of the first installment of Untied Grants for FY 2025–26 – to 20 Zilla Parishads, 233 Panchayat Samitis, and 649 Gram Panchayats.
The grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and disbursed by the Ministry of Finance in two installments each financial year.
Untied Grants allow Panchayati Raj Institutions (PRIs) and RLBs to address location-specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding expenditure on salaries and establishment costs.
In contrast, Tied Grants are earmarked for essential services such as sanitation, solid and liquid waste management, maintaining ODF status, and ensuring safe drinking water supply, rainwater harvesting, and water recycling.
The release underscores the government’s continued support for strengthening grassroots governance and improving basic infrastructure in rural areas of Odisha.
