New Delhi, February 27, 2026: The Union Government has released ₹275.1253 crore to Jharkhand under the Fifteenth Finance Commission (XV FC) during FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) across the state. The amount constitutes 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. The grants are recommended by the Ministry of Panchayati Raj in coordination with the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) and are released by the Ministry of Finance in two installments annually.
The Untied Grants provide flexibility to Panchayats to address location-specific developmental 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 civic services such as sanitation, maintenance of Open Defecation Free (ODF) status, solid and liquid waste management, fecal sludge management, drinking water supply, rainwater harvesting, and water recycling. The financial release is expected to enhance decentralized planning, improve basic service delivery, and strengthen grassroots governance mechanisms across rural Jharkhand, reinforcing the Centre’s continued push for fiscal devolution and sustainable rural development.
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