State - October 9, 2025

Union Government Releases Over ₹680 Crores Under XV Finance Commission to Strengthen PRIs in West Bengal

team maverick October 9, 2025

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The Government of India has released an amount of ₹680.71 crores as the first instalment of Untied (Basic) Grants under the Fifteenth Finance Commission (XV-FC) for Rural Local Bodies (RLBs) / Panchayati Raj Institutions (PRIs) of the state of West Bengal for the Financial Year 2025–26. The release was made on 6^th October 2025 in respect of the eligible 3,224 Gram Panchayats, 335 Block Panchayats and 21 Zilla Parishads across the State.

During the previous financial year 2024–25 and current financial year 2025–26, a total amount of ₹4,181.23 crores was recommended and released to West Bengal, comprising ₹2,082.13 crores as Untied Grants and ₹2,099.10 crores as Tied Grants, underlining the Government of India’s continued commitment to strengthening grassroots governance and service delivery through Panchayati Raj Institutions in the state.

Following amounts have been recommended and released to West Bengal during 2024–25 and 2025-26:

Date of Sanction	Financial Year	Component	Amount Released (Rupees in crore)	Instalment	Remarks
29.08.2024	2024–25	Untied (Basic Grant)	702.04	1^st instalment	Worked on pro-rata basis for eligible RLBs
09.09.2024	2024–25	Tied Grant	1131.42	1^st instalment	For sanitation and drinking water-related works
24.02.2025	2024–25	Untied (Basic Grant)	699.38	2^nd instalment	Includes release of withheld portion of 1st instalment (₹4.93 crore)
25.02.2025	2024-25	Tied Grant	967.68	2^nd instalment	Includes release of withheld portion of 1st instalment (₹7.40 crore)
06.10.2025	2025-26	Untied (Basic Grant)	680.71	1^st instalment	Worked on pro-rata basis for eligible RLBs

Untied Grants from XV-FC provide RLBs with the flexibility to address location-specific development needs across the 29 Subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. These funds support initiatives such as road and footpath construction and maintenance, LED and solar street lighting, village playfields, environmental protection, income-generating activities, digital connectivity, crematorium maintenance etc., aligned with the local priorities identified through participatory planning. Tied Grants, on the other hand, are dedicated to essential services, including sanitation and maintenance of Open Defecation Free (ODF) status, supply of drinking water, rainwater harvesting, water recycling, stormwater drainage, waterlogging management etc.