Union Government Releases over ₹444 Crores under XV Finance Commission Grants to Rural Local Bodies in Odisha

 The Union Government has released the Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies in Odisha during the Financial Year 2025–26. The release includes the second installment of Untied Grants amounting to ₹342.5964 crores for 20 eligible District Panchayats (Zilla Parishads), 296 eligible Block Panchayats (Panchayat Samitis), and 6,734 eligible Gram Panchayats in the State. Additionally, ₹101.7815 crores, representing the withheld portion of the first installment of Untied Grants for FY 2025–26, has been released to 20 eligible Zilla Parishads, 233 eligible Panchayat Samitis, and 649 eligible Gram Panchayats.

The Government of India, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of Fifteenth Finance Commission (XV FC) Grants to States for Panchayati Raj Institutions and Rural Local Bodies. The Ministry of Finance subsequently releases these grants in two installment each financial year.

Untied Grants may be utilized by PRIs and RLBs to meet location-specific needs under the 29 subjects listed in the Eleventh Schedule, excluding salaries and establishment costs. Meanwhile, Tied Grants are to be used for essential services such as sanitation, waste management, and maintenance of ODF status, as well as for drinking water supply, rainwater harvesting, and water recycling.

PIB

Constitutional Provisions:

State Finance Commission:

243-I. Constitution of Finance Commission to review financial position.—

(1) The Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to— 

(a) the principles which should govern— 

(i) the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds; 

(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayats; 

(iii) the grants-in-aid to the Panchayats from the Consolidated Fund of the State; 

(b) the measures needed to improve the financial position of the Panchayats; 

(c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats. 

(2) The Legislature of a State may, by law, provide for the composition of the Commission, the qualifications which shall be requisite for appointment as members thereof and the manner in which they shall be selected. 

(3) The Commission shall determine their procedure and shall have such powers in the performance of their functions as the Legislature of the State may, by law, confer on them. 

(4) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

Central Finance Commission:

280. Finance Commission.—

(1) The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President. 

(2) Parliament may by law determine the qualifications which shall be requisite for appointment as members of the Commission and the manner in which they shall be selected. 

(3) It shall be the duty of the Commission to make recommendations to the President as to— 

(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds; 

(b) the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India; 

1 [(bb) the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State on the basis of the recommendations made by the Finance Commission of the State;] 

2 [(c) the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;] 

3 [(d)] any other matter referred to the Commission by the President in the interests of sound finance. 

(4) The Commission shall determine their procedure and shall have such powers in the performance of their functions as Parliament may by law confer on them.

————-

1. Ins. by the Constitution (Seventy-third Amendment) Act, 1992, s. 3 (w.e.f. 24-4-1993). 

2. Ins. by the Constitution (Seventy-fourth Amendment) Act, 1992, s. 3 (w.e.f. 1-6-1993). 

3. Sub-clause (c) re-lettered as sub-clause (d) by s. 3, ibid. (w.e.f. 1-6-1993).

————-

281. Recommendations of the Finance Commission.—The President shall cause every recommendation made by the Finance Commission under the provisions of this Constitution together with an explanatory memorandum as to the action taken thereon to be laid before each House of Parliament. 

Comments

Popular posts from this blog

Russian parliament passed a bill to revoke its ratification of the Comprehensive Test Ban Treaty

ISRO developing semi-cryogenic engine working on LOX Kerosene propellant

Interstellar space and Interstellar Probes ( Voyager and New Horizons Missions )