Centre releases Rs 30.6 crore XV Finance Commission untied grants to Tripura Panchayati Raj Institutions for FY 2025–26, strengthening grassroots governance, rural development, and decentralised planning across Gram Panchayats, Block Panchayats, Zilla Parishads, and tribal councils.
The Union Government has released Rs 30.6 crore as the second instalment of the Fifteenth Finance Commission (XV-FC) Untied Grants for the financial year 2025–26 to Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in Tripura. The funding is aimed at strengthening grassroots governance, improving rural infrastructure, and enabling local bodies to address area-specific development priorities.
According to official sources, the released amount will benefit all eligible rural governance institutions across the state. The grants cover 606 Gram Panchayats, 35 Block Panchayats, eight Zilla Parishads, 587 Village Committees, 40 Block Advisory Committees, and one Tripura Tribal Areas Autonomous District Council (TTAADC) Headquarters. In addition to the main allocation, the Centre has also disbursed Rs 85 lakh from the withheld portion of the first instalment of Untied Grants for FY 2025–26 to one additional eligible TTAADC Headquarters.
The XV Finance Commission Untied Grants are designed to provide flexibility to local bodies, allowing them to respond effectively to location-specific needs. These funds can be utilised for development works under the 29 subjects listed in the Eleventh Schedule of the Constitution, which include rural housing, sanitation, drinking water, roads, health, education, and social welfare. However, the guidelines clearly prohibit the use of these grants for salaries, administrative expenses, or other establishment-related costs.
Officials stated that the release of funds reflects the Centre’s continued commitment to empowering local self-governance institutions and promoting decentralised development. By ensuring timely financial support, the government aims to enhance the capacity of PRIs and RLBs to plan and execute development projects that directly benefit rural communities.
The process of releasing XV Finance Commission grants involves multiple ministries at the central level. The Ministry of Panchayati Raj and the Ministry of Jal Shakti, particularly the Department of Drinking Water and Sanitation, recommend the release of funds based on compliance with prescribed conditions. Following these recommendations, the Ministry of Finance sanctions and disburses the grants to the states. The funds are typically released in two instalments each financial year, subject to the fulfilment of mandatory performance and transparency criteria.
In Tripura, the fresh infusion of funds is expected to accelerate ongoing development initiatives and support new projects aimed at improving basic services in rural and tribal areas. Local administrations have been advised to ensure transparency, accountability, and efficient utilisation of the grants, with a focus on outcomes that improve the quality of life of rural residents.
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Experts believe that untied grants play a crucial role in addressing regional disparities, as they allow local bodies to prioritise projects based on ground realities rather than centrally imposed schemes. The latest release is therefore seen as a significant step toward strengthening cooperative federalism and reinforcing the role of Panchayati Raj Institutions in India’s development framework.
