Finance Commission grants: Centre releases over Rs 400 crore for local bodies in Odisha

Bhubaneswar: The Centre has released the 15th Finance Commission grants for rural local bodies in Odisha for 2025–26 financial year. It has provided over Rs 400 crore as grants to Zilla Parishads, Panchayat Samitis and Gram Panchayats in the state.  

The Union Government has released the second installment of Untied Grants amounting to Rs 342.5964 crore for 20 eligible District Panchayats (Zilla Parishads), 296 eligible Block Panchayats (Panchayat Samitis), and 6,734 eligible Gram Panchayats in Odisha.

Also Read: Centre promises support for Bhubaneswar metro rail project

Additionally, the Centre has released Rs 101.7815 crore to cover the withheld portion of the first installment of Untied Grants for 2025–26 fiscal. The amount has been released for 20 eligible Zilla Parishads, 233 eligible Panchayat Samitis, and 649 eligible Gram Panchayats.

Finance Commission grants are released to the states on the recommendations of the Centre   

The Centre, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommends the release of 15th Finance Commission grants to states for Panchayati Raj Institutions (PRIs) and rural local bodies (RLBs). The Ministry of Finance subsequently releases these grants in two installment each financial year.

Also Read: Centre approves 62 additional PG seats in 6 medical colleges in Odisha

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.