RECOMMENDATION OF 15TH FINANCE COMMISSION

2026-03-17 Information

The Fifteenth Finance Commission has recommended the allocation of Rs. 60,750 crores for FY 2020-21 [Interim period] and Rs.2,36,805 crore for the FY 2021-2026 to the Rural Local Bodies (RLBs).

The criteria for fund allocation determined by the 15th Central Finance Commission involve inter-se distribution among the States, with a weightage of 90 percent assigned to the population and 10 percent to the areas of the States. The inter-se distribution among all the tiers is done by the State Governments on the basis of the accepted recommendations of the latest State Finance Commission (SFC) and in conformity with the following bands;

Range for Distribution

Gram Panchayats

Block Panchayats

District Panchayats

Minimum

70%

10%

Maximum

85%

25%

15%

States which have a two-tier system with only village and district panchayats, the allocation is as below:

Range for Distribution

Gram Panchayats

District Panchayats

Minimum

70%

15%

Maximum

85%

30%

In the event of SFC recommendations not being available, the inter-se distribution within the tiers should be decided by the State Government within the bands indicated above. The intra-tier distribution among the relevant entities across the State should be on the basis of population and area in the ratio of 90:10 or as per the accepted recommendation of the latest SFC.

The mandatory eligibility conditions as per the guidelines of the Ministry of Finance for the release of grants under the Fifteenth Finance Commission are enumerated as under:

The State-wise details of grants recommended and released in fulfillment of prescribed eligibility conditions under the Fifteenth Finance Commission to Rural Local Bodies (RLBs) during the award period from FY 2020-21 to FY 2025-26 are given at Annexure.

The Ministry of Panchayati Raj has implemented several measures to monitor the state-wise distribution and utilization of 15th Finance Commission Grants. The Ministry of Panchayati Raj launched the eGramSwaraj application in April, 2020 for monitoring of various aspects of Panchayat functioning, such as planning, budgeting, accounting and audit. Further, an application ‘AuditOnline’ has been developed for online audits of Panchayat accounts and their financial management also in April 2020.

During the current FY 2025–26, out of a total of 2,64,211 Gram Panchayats and equivalent bodies across the country, 2,54,604 Gram Panchayats and equivalent (96.36%), have uploaded their Gram Panchayat Development Plans (GPDPs) on eGramSwaraj and 2,42,871 Gram Panchayats and equivalent (91.92%) have transferred ₹38,491 crore to vendors through the eGramSwaraj–PFMS interface. For FY 2024-25, over 2.58 lakh PRIs have closed their year books and 1.63 lakh PRIs have PRIs generated their Audit reports.

The Ministry of Panchayati Raj (MoPR) and the Department of Drinking Water and Sanitation (DDWS) are the nodal Ministries for recommending the release of Untied (Basic) Grants and Tied Grants, respectively, to the Rural Local Bodies (RLBs) under the Fifteenth Finance Commission (15th FC).

As per the recommendations of the 15th FC, grants to RLBs are released to the States in two instalments every year. Upon receipt of the Grant Transfer Certificate (GTC) from a State for the last released instalment and fulfilment of the eligibility conditions prescribed in the guidelines, MoPR recommends the release of the next instalment of Untied Grants to the Ministry of Finance (MoF). Similarly, DDWS recommends the release of the respective instalment of Tied Grants to MoF.

Accordingly, the timing of release may vary depending upon the receipt of the GTC for the last instalment released and the fulfilment of the prescribed eligibility conditions by the respective State. MoPR has released Untied Grants timely upon fulfilment of these conditions.

Annexure

State-wise details of grants recommended and released under the 15^th Finance Commission to Rural Local Bodies (RLBs) during the award period from FY 2020-21 to FY 2025-26

(Rs. in crores)

Sl. No.

States

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

Total

Allocation

Release

Allocation

Release

Allocation

Release

Allocation

Release

Allocation

Release

Allocation

Release

Allocation

Release

Andhra Pradesh

2625.00

1939.00

1917.85

2010.00

1976.75

2031.00

1997.45

2152.00

2109.97

2099.00

2053.81

12856.00

12680.82

Arunachal Pradesh

231.00

170.00

177.00

35.40

179.00

0.00

189.00

0.00

185.00

0.00

1131.00

436.40

Assam

1604.00

1186.00

1228.00

1241.00

1315.00

1283.00

7857.00

Bihar

5018.00

3709.00

3842.00

3884.00

3855.33

4114.00

4109.01

4012.00

2806.31

24579.00

23339.65

Chhattisgarh

1454.00

1075.00

1114.00

1125.00

1192.00

1185.25

1163.00

802.06

7123.00

6755.32

Goa

75.00

55.00

57.00

48.46

58.00

36.13

62.00

0.00

61.00

0.00

368.00

214.59

Gujarat

3195.00

2362.00

2446.00

2473.00

2619.00

2555.00

1782.04

15650.00

14877.04

Haryana

1264.00

935.00

968.00

967.30

979.00

953.59

1036.00

1012.51

1011.00

988.14

6193.00

6120.54

Himachal Pradesh

429.00

317.00

329.00

332.00

318.04

352.00

343.00

341.50

2102.00

2086.53

Jharkhand

1689.00

1249.00

1293.00

1307.00

1385.00

962.94

1351.00

0.00

8274.00

6500.94

Karnataka

3217.00

2377.00

2375.50

2463.00

2093.55

2490.00

2086.59

2637.00

2133.25

2572.00

0.00

15756.00

11905.89

Kerala

1628.00

1203.00

1246.00

1260.00

1334.00

1301.00

650.50

7972.00

7321.50

Madhya Pradesh

3984.00

2944.00

3050.00

3083.00

2923.89

3265.00

3262.75

3185.00

630.65

19511.00

16795.29

Maharashtra

5827.00

4307.00

4267.16

4461.00

3696.71

4510.00

3629.21

4776.00

3169.72

4659.00

2507.25

28540.00

23097.05

Manipur

177.00

131.00

65.50

135.00

0.00

137.00

0.00

145.00

0.00

142.00

0.00

867.00

242.50

Meghalaya

182.00

135.00

94.50

140.00

0.00

141.00

0.00

149.00

0.00

146.00

0.00

893.00

276.50

Mizoram

93.00

69.00

71.00

72.00

76.00

74.00

37.00

455.00

418.00

Nagaland

125.00

92.00

96.00

48.00

97.00

0.00

102.00

0.00

99.00

0.00

611.00

265.00

Odisha

2258.00

1669.00

1728.00

1747.00

1746.91

1851.00

1805.00

1712.98

11058.00

10965.89

Punjab

1388.00

1026.00

1062.00

1074.00

1058.35

1138.00

1127.86

1110.00

555.00

6798.00

6217.22

Rajasthan

3862.00

2854.00

2957.00

2955.34

2989.00

2847.96

3166.00

3087.00

757.60

18915.00

16442.90

Sikkim

42.00

31.00

33.00

35.00

32.78

33.00

22.85

207.00

194.63

Tamil Nadu

3607.00

2666.00

2761.00

2791.00

2957.00

2884.00

637.93

17666.00

15419.93

Telangana

1847.00

1365.00

1415.00

1430.00

1514.00

640.07

1477.00

0.00

9048.00

6697.07

Tripura

191.00

141.00

147.00

148.00

157.00

156.31

153.00

937.00

936.31

Uttar Pradesh

9752.00

7208.00

7466.00

7547.00

7994.00

7797.00

5441.38

47764.00

45408.38

Uttarakhand

574.00

425.00

418.70

440.00

439.21

445.00

444.13

471.00

470.30

458.00

89.41

2813.00

2435.74

West Bengal

4412.00

3261.00

3378.00

3415.00

3617.00

3472.22

3528.00

3403.92

21611.00

21342.14

Total

60750.00

44901.00

44726.22

46513.00

44869.71

47018.00

44739.57

49800.00

45508.95

48573.00

26656.33

297555.00

267250.78

This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written reply in Lok Sabha on 17^th March 2026.

RLBs shall be deemed to be eligible for the grants if they are duly constituted i.e. if duly elected bodies are in place except for States/ Areas where Part IX of the Constitution does not apply. In case, all the bodies are not duly constituted grants shall be released to the State on an actual allocation / pro-rata basis for duly constituted only.
Uploading of Plans by the RLBs for FY under consideration, as the case may be in eGramSwaraj failing which the grant is released on a pro-rata basis only to those RLBs which have uploaded the plans on e-Gramswaraj application.
RLBs have to mandatorily onboard on eGramSwaraj – PFMS for XV FC Grants’ Transactions.

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