The Union Government has released ₹213.9 crore to Assam as the first instalment of the Fifteenth Finance Commission Untied Grants for Rural Local Bodies for the financial year 2025–26.

What has been released and to whom?

The funds have been released to strengthen grassroots self-governance across Assam.

• The amount covers:
  • 2,192 Gram Panchayats
  • 182 Block Panchayats
  • 27 Zila Parishads
• These are eligible Panchayati Raj Institutions, fulfilling prescribed financial and governance conditions.

The grants are part of recommendations of the Fifteenth Finance Commission, routed through the Ministry of Panchayati Raj, Ministry of Jal Shakti, and finally released by the Ministry of Finance.

Untied vs Tied Grants 

• United Grants:
  • Can be used by panchayats for local priority needs
  • Must relate to the 29 subjects listed in the Eleventh Schedule of the Constitution
  • Cannot be used for salaries or establishment costs
• Tied Grants (released separately):
  • Reserved for basic civic services, especially:
    • Sanitation, waste management, and maintaining open defecation free status
    • Drinking water, rainwater harvesting, and water recycling

This flexible design empowers local bodies to address area-specific problems rather than following a rigid, one-size-fits-all approach.

Why is this important for Assam?

• Strengthens fiscal decentralisation and cooperative federalism
• Enhances delivery of basic rural services
• Supports achievement of Sustainable Development Goals at the village level
• Reinforces the constitutional vision of local self-government under Part IX

Constitutional and governance significance

• Based on Article 280, which mandates Finance Commissions
• Linked to Eleventh Schedule subjects such as drinking water, sanitation, rural housing, roads, and public health
• Encourages accountability, planning, and participatory governance at the grassroots

Exam Hook

UPSC Prelims 

Q. Consider the following statements:

1. Untied grants recommended by the Fifteenth Finance Commission can be used for salaries of Panchayati Raj Institutions.
2. Tied grants focus on sanitation and drinking water-related services.
3. The Eleventh Schedule of the Constitution lists subjects under the Panchayati Raj system.

Which of the statements given above are correct?
(a) 2 and 3 only
(b) 1 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3

Answer: (a)

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