Centre releases over Rs 127 crore to support rural local bodies in Tamil Nadu

New Delhi [India], December 20 (ANI): The Union Government has released Rs 127.586 crores to Rural Local Bodies and Panchayati Raj Institutions in Tamil Nadu during the financial year 2025-26, an official release from the Ministry of Panchayati Raj said on Saturday.
According to the release, the amount represents the second instalment of untied grants under the XV Finance Commission for 2025-26. These grants have been released for 9 District Panchayats, 74 Block Panchayats and 2,901 Gram Panchayats that have duly elected bodies and fulfil the prescribed eligibility conditions.
All these local groups have bodies elected by the people. They also meet the necessary conditions to receive these funds.
According to the release, the process of sending this money involves multiple government agencies working together. The Ministry of Panchayati Raj and the Ministry of Jal Shakti, which oversees drinking water and sanitation, assess the state's needs. They then tell the Ministry of Finance that the money should be sent. The Ministry of Finance is the office that finally releases the funds to the states.
"The allocated grants are recommended and released in two instalments in a financial year," the release stated.
"The Untied Grants will be utilised by RLBs/ PRIs 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," it added.
The Tied Grants can be used 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 fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.
Earlier this year, Tamil Nadu Chief Minister MK Stalin accused the Union government of withholding funds owed to Tamil Nadu, including allocations under the Samagra Shiksha scheme.
The Samagra Shiksha scheme is an integrated scheme for school education covering the entire gamut from pre-school to class XII. The scheme treats school education as a continuum and is in accordance with Sustainable Development Goal for Education (SDG-4).
"On the contrary, the Union BJP Government is denying funds that rightfully belong to the States. Tamil Nadu is being denied #SamagraShiksha funds only because we refuse to accept #HindiImposition. When will this injustice end?" Stalin asked on X.
He reiterated his demand for cooperative federalism, saying that India cannot progress by "punishing states that defend their rights and stand for their people."
He urged the Centre to release the pending funds and respect the principles of federalism.
"India cannot grow by punishing States that defend their rights and stand for their people. Respect federalism, release the funds, and let the people benefit from what is rightfully theirs!" he said. (ANI)