Union government releases first instalment of united grants to T.N. rural local bodies

The Union government has released ₹127.586 crore to Tamil Nadu as the first instalment of the Fifteenth Finance Commission Grants for Rural Local Bodies during FY 2025-26.

The first instalment of untied grants covers 2,901 eligible gram panchayats, 74 eligible block panchayats, and nine eligible district panchayats in the State, an official release from Union Ministry of Panchayati Raj said.

The Government of India, through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of Finance Commission grants to States for Rural Local Bodies (RLBs) / Panchayati Raj Institutions (PRIs), which are then released by the Ministry of Finance, it said.

The allocated grants are recommended and released in two instalments in a financial year, the release added.

Untied grants will be utilised for location-specific felt needs, under the Twenty-Nine (29) subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs, it noted.