Rural local bodies can use funds for area-specific needs under the Eleventh Schedule, excluding salaries and establishment expenses
NEW DELHI
The Centre on Monday released over Rs 260.20 crore to rural local bodies in Kerala under the 15th Finance Commission grants for the financial year 2025-26.
This amount is the first instalment of untied grants meant to support development activities across all 14 district panchayats, 152 block panchayats, and 9,414 gram panchayats in the state, according to an official statement.
The funds can be used by rural local bodies to meet area-specific needs listed under the Eleventh Schedule of the Constitution, excluding salaries and other establishment expenses.
These grants help panchayats plan and carry out local projects based on the priorities of their communities.
In contrast, tied grants are provided for essential services such as sanitation, waste management, drinking water supply, rainwater harvesting, water recycling, and maintaining open defecation-free status in villages.
The Centre had earlier released Rs 717.17 crore to Maharashtra for rural local bodies under the same Finance Commission grants for 2025-26.
These funds covered elected district, block, and gram panchayats across the state to improve local governance.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti jointly recommend the release of these grants, which are approved and issued by the Ministry of Finance.
The grants are released in two instalments every financial year to ensure timely development work at the grassroots level.
Earlier this year, the Centre also released over Rs 223 crore for Assam and Rs 444.38 crore for Odisha to strengthen rural panchayat institutions under the same scheme.
These releases highlight the government’s focus on empowering villages, improving services, and supporting decentralised planning through steady financial support for grassroots institutions nationwide today consistently.
