Current Affairs

UTILISATION OF FUNDS BY PANCHAYATI RAJ INSTITUTIONS

UTILISATION OF FUNDS BY PANCHAYATI RAJ INSTITUTIONS

The Central Finance Commission’s devolved funds are allocated, presently under the Fifteenth Finance Commission (FFC), for the Panchayati Raj Institutions (PRIs) through the States. The FFC Grants have two components—Tied and Untied.

The untied grant, which is 40% of the total grant, can be used by RLBs for their location-specific felt needs under the 29 subjects enshrined in the Eleventh Schedule of the Constitution, except for salary or other establishment expenditure. The tied grant, which is 60% of total grants, can be used for providing basic services of (a) sanitation and maintenance of Open Defecation Free (ODF) status, which includes management and treatment of household waste, human excreta and faecal sludge management and (b) supply of drinking water, rainwater harvesting and water recycling. If any local body has fully saturated the needs of one category, it can utilise the funds for the other category.

A state-wise statement indicating allocation, release and utilization of funds under the FFC grants is at Annexure.

Annexure

State-wise Allocation, Release and Utilization of Funds to/by Rural Local Bodies under the Fifteenth Finance Commission

(Rs. in crore)

State

Allocation

Release

(as on 05.03.2026)

Utilization

(as on 05.03.2026)

Andhra Pradesh

12,856.00

12,680.82

6,404.17

Arunachal Pradesh

1,131.00

436.40

295.26

Assam

7,857.00

7,108.76

3,724.85

Bihar

24,579.00

23,339.65

17,068.30

Chhattisgarh

7,123.00

6,514.69

6,903.87

Goa

368.00

214.59

77.72

Gujarat

15,650.00

14,367.68

11,248.14

Haryana

6,193.00

5,820.35

4,377.36

Himachal Pradesh

2,102.00

1,983.57

1,632.74

Jharkhand

8,274.00

6,500.94

5,344.92

Karnataka

15,756.00

11,905.89

11,053.51

Kerala

7,972.00

7,321.50

4,093.90

Madhya Pradesh

19,511.00

16,059.99

13,405.33

Maharashtra

28,540.00

23,097.05

19,411.29

Manipur

867.00

242.50

96.95

Meghalaya

893.00

276.50

14.70

Mizoram

455.00

395.80

371.84

Nagaland

611.00

265.00

0.00

Odisha

11,058.00

10,965.89

8,054.71

Punjab

6,798.00

5,884.22

6,221.17

Rajasthan

18,915.00

16,442.90

13,015.47

Sikkim

207.00

194.63

138.37

Tamil Nadu

17,666.00

15,419.93

12,125.58

Telangana

9,048.00

6,697.07

2,669.31

Tripura

937.00

936.31

963.83

Uttar Pradesh

47,764.00

45,408.38

42,968.96

Uttarakhand

2,813.00

2,435.74

1,837.90

West Bengal

21,611.00

20,320.85

18,865.21

Total

297,555.00

263,237.61

212,385.33

*Includes interim award of the FFC for the year 2020-21

 Note: The utilisation is as reported by the RLBs on eGramSwaraj Portal.

This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written reply in Lok Sabha on 10th March 2026.

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