Tamil Nadu : The Union Government has released over ₹342 crore as 15th Finance Commission grants for rural local bodies in Tamil Nadu and Assam.
In Tamil Nadu, grants for FY 2025–26 have been disbursed, with the first installment of untied funds amounting to ₹127.586 crore. These cover 2,901 eligible Gram Panchayats, 74 Block Panchayats, and nine District Panchayats. For Assam, ₹214.542 crore has been released for FY 2024–25, covering all 2,192 eligible Gram Panchayats, 156 Block Panchayats, and 27 Zilla Parishads.
The Finance Commission grants are released through the Ministry of Panchayati Raj and the Ministry of Jal Shakti, with funds transferred by the Ministry of Finance in two installments each financial year.
Untied grants are meant for location-specific development under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salaries or establishment costs. Tied grants, on the other hand, focus on sanitation, maintenance of ODF (Open Defecation Free) status, household waste management, faecal sludge treatment, drinking water supply, rainwater harvesting, and water recycling.
The allocation aims to empower panchayati raj institutions and strengthen grassroots governance for improved service delivery in rural areas.