New Delhi marked a significant step for rural empowerment as the Union Government disbursed more than ₹1,133 crore on Friday under the 15th Finance Commission awards. The funds target Panchayati Raj Institutions and Rural Local Bodies in Madhya Pradesh, Punjab, and Telangana for the fiscal year 2025-26.
Breaking down the allocation, Madhya Pradesh secures ₹652.55 crore in the second tranche of untied grants for 2024-25, reaching every eligible district, block, and gram panchayat—52 districts, 312 blocks, and over 23,000 villages. A further ₹77 lakh unlocks previously held funds for additional local bodies.
For Punjab, ₹222 crore flows as the initial untied grant for 2025-26, fortifying 13,262 gram panchayats, 150 blocks, and 22 districts. This comes at a crucial time for enhancing local governance in the agrarian state.
Telangana benefits from ₹256.03 crore in the first instalment for 2024-25, covering 12,702 gram panchayats, plus ₹2.33 crore released from prior withholdings to 11 gram panchayats and 40 blocks.
These untied resources allow panchayats to address unique regional priorities beyond basic salaries. Meanwhile, tied grants prioritize sanitation drives, ODF sustainability, solid and liquid waste management, safe drinking water, and water conservation efforts. Such investments are pivotal in building resilient rural economies and improving quality of life for millions.