The Government of India has released ₹1,091.47 crore as the first instalment of untied grants under the Fifteenth Finance Commission for rural local bodies in West Bengal and Andhra Pradesh, the Ministry of Panchayati Raj announced on Thursday.
The funds are part of the Union Government’s continued push to strengthen grassroots governance, improve rural infrastructure, and ensure effective service delivery through Panchayati Raj Institutions (PRIs).
🏘️ Allocation Breakdown: ₹680.71 Crore for West Bengal, ₹410.76 Crore for Andhra Pradesh
🔹 West Bengal
- Grant Released: ₹680.71 crore
- Coverage: 3,224 Gram Panchayats, 335 Block Panchayats, and 21 Zilla Parishads
- Financial Year: 2025–26
According to the Ministry’s statement, during FY 2024–25 and FY 2025–26, the Centre has disbursed a total of ₹4,181.23 crore to West Bengal:
- ₹2,082.13 crore as untied grants
- ₹2,099.10 crore as tied grants
“The continued fund flow underscores the Government of India’s commitment to strengthening rural self-governance and improving local-level service delivery mechanisms,” the statement read.

🔹 Andhra Pradesh
- Grant Released: ₹410.76 crore
- Coverage: All 13 Zilla Praja Parishads, 650 Mandal Praja Parishads, and 13,092 Gram Panchayats (out of 13,327 total GPs)
- Financial Year: 2025–26
The funds will be used by local bodies across Andhra Pradesh to address local needs and implement development schemes under the 29 subjects of the Eleventh Schedule of the Constitution.
💧 How the Grants Will Be Utilised
The untied grants give Panchayats flexibility to address local priorities, excluding salaries or establishment costs.
Meanwhile, tied grants must be used for basic civic and environmental services, including:
- 🧹 Sanitation and maintenance of ODF (Open Defecation-Free) status
- 🚰 Supply of safe drinking water and rainwater harvesting
- 🔄 Water recycling and treatment of household waste
- 💧 Fecal sludge and solid waste management
These allocations are meant to ensure that rural India remains clean, healthy, and sustainable while empowering Panchayats to directly manage local needs.
💡 Digital Governance Tools Empowering Panchayati Raj
The Ministry of Panchayati Raj is also integrating digital governance and AI tools to make local administration more transparent and efficient.
Key initiatives include:
- 🧠 SabhaSaar: AI-powered tool for recording and summarising Gram Sabha proceedings.
- 📍 Gram Manchitra: Geo-spatial platform for village-level planning and mapping.
- 🛰️ SVAMITVA: Drone-based digital land mapping and property rights initiative.
- 💻 eGramSwaraj: Integrated online system for planning, accounting, and monitoring Panchayat activities.
“These platforms enable better transparency, accountability, and citizen participation in Panchayati Raj governance,” the Ministry stated.
📊 Summary of Central Grant Allocation
| State | Type of Grant (FY 2025–26) | Amount (₹ crore) | Beneficiary Panchayats |
|---|---|---|---|
| West Bengal | Untied (1st instalment) | 680.71 | 3,224 Gram, 335 Block, 21 Zilla |
| Andhra Pradesh | Untied (1st instalment) | 410.76 | 13,092 Gram, 650 Mandal, 13 Zilla |
| Total | 1,091.47 crore | — |
🌾 Strengthening Grassroots India
The Fifteenth Finance Commission’s grants play a crucial role in empowering Panchayats to plan, execute, and monitor development works at the village and block levels.
The focus remains on improving infrastructure, sanitation, water supply, and digital governance, ensuring that rural India grows inclusively and sustainably.









