Centre Releases ₹127.5 Crore for Rural Local Bodies in Tamil Nadu
Funds under XV Finance Commission to strengthen Panchayats and basic rural services
- ₹127.586 crore released as second instalment of XV Finance Commission grants for 2025–26
- Funds allocated to District, Block and Gram Panchayats across Tamil Nadu
- Untied grants to support local development needs, excluding salaries
- Tied grants focused on sanitation, drinking water and waste management
GG News Bureau
New Delhi, 20th Dec: The Union Government has released ₹127.586 crore to Rural Local Bodies (RLBs) and Panchayati Raj Institutions (PRIs) in Tamil Nadu during the financial year 2025–26, as part of the second instalment of untied grants under the XV Finance Commission, according to official information released on Friday.
The funds have been disbursed to 9 District Panchayats, 74 Block Panchayats and 2,901 Gram Panchayats in the state. The release is subject to the condition that these local bodies have duly elected representatives and meet the eligibility criteria prescribed by the Finance Commission.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV Finance Commission grants to states, which are subsequently disbursed by the Ministry of Finance. The grants are released in two instalments every financial year.
The untied grants are intended to enable Panchayats to address location-specific development needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, excluding expenditure on salaries and establishment costs.
Meanwhile, tied grants are earmarked for essential public services, including sanitation, maintenance of Open Defecation Free (ODF) status, management of household waste and faecal sludge, as well as drinking water supply, rainwater harvesting and water recycling.
The government said the release of funds aims to strengthen grassroots governance and improve the delivery of basic civic services in rural areas of Tamil Nadu.
