Centre releases first instalment of XV Finance Commission Grants for Sikkim's rural local bodies

New Delhi [India], January 15 (ANI): The Union Government has released the first instalment of the XV Finance Commission Untied Grants for Rural Local Bodies in Sikkim for the financial year 2025-26.
According to an official press release from the Ministry of Panchayati Raj, the total disbursement for this instalment amounts to Rs 643.50 lakh. The funding is intended to bolster the administrative and developmental capacity of the state's grassroots institutions.
These funds are allocated to five eligible District Panchayats (DPs) and all 199 eligible Gram Panchayats (GPs) across the state. In addition to the allocation for the current financial year, the government has also released Rs 17.50 lakh.
This amount constitutes the withheld portion of the second instalment of Untied Grants for the 2024-25 financial year and is provided to one additionally eligible District Panchayat.
"The Union Government has released the first instalment of the XV Finance Commission Untied Grants for Rural Local Bodies in Sikkim for the financial year 2025-26, amounting to ₹643.50 lakhs. These funds are for the eligible 5 District Panchayats (DPs) and all 199 eligible Gram Panchayats (GPs) of the State. Further, Rs17.50 lakhs of the withheld portion of the 2nd instalment of Untied Grants for FY 2024-25 has also been released to an additional eligible 1 District Panchayat," the release said.
The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti's Department of Drinking Water and Sanitation, recommends the release of XV-FC grants to the states for their Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs).
Once these recommendations are finalised, the Ministry of Finance releases the allocated funds.
Under the existing guidelines, grants are recommended and released in two instalments within a single financial year. This ensures a consistent flow of financial resources to the rural local bodies. The Untied Grants provide these institutions with the flexibility to address diverse local requirements.
The Ministry release states that "The Untied Grants will be utilised by Panchayati Raj Institutions (PRIs) / Rural Local Bodies (RLBs) for location-specific felt needs, under the twenty-nine subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs."
The Tied Grants are focused on delivering essential basic services to the rural population. A major portion of these funds is dedicated "for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste and human excreta and faecal sludge management in particular, and (b) supply of drinking water, rainwater harvesting and water recycling." (ANI)