Assam’s Panchayats get fresh XV-FC grant support

In a significant boost to grassroots governance, the Union government has released substantial Fifteenth Finance Commission (XV-FC) grants for Assam’s rural local bodies for the financial year 2025–26. The latest allocation, announced by the Ministry of Panchayati Raj, aims to strengthen basic services, deepen decentralised planning, and support critical development needs across rural Assam.

According to the ministry, the release includes the second installment of untied grants for 2024–25, amounting to Rs 219.24 crore. These funds will flow to all eligible 27 district panchayats, 182 block panchayats, and 2,192 gram panchayats, giving them financial space to plan and act on local priorities such as infrastructure gaps, community needs, and essential public services.

In a major move, the Centre has also cleared Rs 4,698 crore from the withheld portion of the first instalment of untied grants for 2024–25, benefitting 26 additional block panchayats that have now met eligibility conditions. This large release is expected to help rural bodies clear pending works and take up new development tasks aligned with the Eleventh Schedule of the Constitution.

The XV-FC grants are recommended jointly by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and are formally issued to states by the Ministry of Finance. These grants are released in two installments each financial year.

Importantly, untied grants provide flexibility, allowing rural bodies to act on “location-specific felt needs” across the 29 subjects constitutionally assigned to panchayats excluding salaries and establishment costs. Tied grants, on the other hand, come with clear objectives: strengthening sanitation systems, maintaining Open Defecation Free (ODF) status, improving waste and faecal sludge management, and enhancing water supply, rainwater harvesting, and water recycling.

The latest fund release signals the Centre’s continued push for empowered, better-resourced panchayati raj institutions, and is expected to accelerate development outcomes across rural Assam.