The Government of India has released over Rs 723 crore as Fifteenth Finance Commission (XV-FC) grants during FY 2025–26 to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Rajasthan and Jharkhand.

In Rajasthan, the Centre released the first instalment of Untied Grants for FY 2025–26 amounting to Rs 303.0419 crore for 24 District Panchayats, 339 Block Panchayats, and 3,857 Gram Panchayats. Additionally, Rs 145.24 crore—the withheld portion of the first and second instalments of FY 2024–25 Untied Grants—has been released to newly eligible RLBs in the state.

For Jharkhand, the Union Government released the first instalment of Untied Grants for FY 2024–25 amounting to Rs 275.1253 crore, covering 24 District Panchayats, 253 Block Panchayats, and 4,342 Gram Panchayats across the state.

The releases are made on the recommendation of the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), with funds disbursed by the Ministry of Finance. XV-FC grants are released in two instalments annually.

Untied Grants may be used for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. Tied Grants are earmarked for sanitation and maintenance of ODF status—including waste and fecal sludge management—and for drinking water supply, rainwater harvesting, and water recycling.