Centre releases Rs 680 crore — first instalment of Finance Commission Grant for state local bodies

“During the previous financial year 2024–25 and current financial year 2025–26, a total amount of Rs 4,181.23 crores was recommended and released to West Bengal, comprising Rs 2,082.13 crores as Untied Grants and Rs2,099.10 crores as Tied Grants, underlining the Government of India’s continued commitment to strengthening grassroots governance and service delivery through Panchayati Raj Institutions in the state,” the Ministry said.

Untied grants offer flexibility to address local development needs like road construction, LED street lighting, and environmental protection, identified through participatory planning.

“Untied grants… provide RLBs with the flexibility to address location-specific development needs across the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. These funds support initiatives such as road and footpath construction and maintenance, LED and solar street lighting, village playfields, environmental protection, income-generating activities, digital connectivity, crematorium maintenance etc., aligned with the local priorities identified through participatory planning,” it said.

“Tied grants, on the other hand, are dedicated to essential services, including sanitation and maintenance of Open Defecation Free (ODF) status, supply of drinking water, rainwater harvesting, water recycling, stormwater drainage, waterlogging management etc,” the Ministry further added.

Additionally, a Rs 151 crore health sector grant has been released to West Bengal for enhancing diagnostic infrastructure in rural primary healthcare facilities.

The funds aim to equip sub-centres to provide necessary diagnostic services, benefiting rural citizens.

“The XV Finance Commission (XV FC) recommended Health Sector Grant for ‘Support for Diagnostic Infrastructure to the Primary Healthcare Facilities for the Sub-Centres (for rural)’ is intended to be utilized to fully equip primary healthcare facilities so that they can provide necessary diagnostic services in rural areas. This release will help strengthen diagnostic infrastructure at the grassroots level, benefitting citizens in villages where Panchayati Raj Institutions are functioning,” the Ministry said.

The Centre has also disbursed Rs 410.76 crore as the first instalment of untied grants to rural local bodies in Andhra Pradesh, benefiting district panchayats, block panchayats, and gram panchayats in the state, the ministry said in a separate statement.

“The first installment of the Untied Grants, amounting to Rs 410.76 crores has been disbursed. These funds will benefit all 13 District Panchayats (Zilla Praja Parishads), 650 eligible Block Panchayats (Mandal Praja Parishads) and 13,092 eligible Gram Panchayats (GPs) out of 13,327 GPs in the State,” the ministry said in a separate statement.