Centre Releases ₹14.40 Cr XV FC Untied Grants to Rural Local Bodies in Mizoram

The Union Government has released the second installment of Untied Grants amounting to ₹14.40 crores under the Fifteenth Finance Commission (XV FC) for Rural Local Bodies (RLBs) in Mizoram for the financial year 2025–26. Along with this release, the Centre has also disbursed the withheld amount of ₹0.1209 crores from FY 2023–24, ensuring additional financial support to local governance institutions in the state.

These funds will benefit 808 eligible Village Councils in Mizoram, strengthening grassroots-level development.

Earlier Release in August 2025

In August 2025, Mizoram had received ₹14.2761 crores for 827 eligible Village Councils as part of the XV FC Untied Grants for the financial year 2023–24. With the latest release, the Union Government has continued its commitment to empowering rural local bodies through predictable and transparent financial devolution.

Mechanism of Grant Allocation

The XV FC grants are recommended by the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation). The Ministry of Finance subsequently releases the approved amounts in two installments during a financial year.

These grants are broadly classified into two categories:

• Untied Grants: These can be used by Rural Local Bodies and Panchayati Raj Institutions for location-specific needs, as per the 29 subjects listed in the Eleventh Schedule of the Constitution of India. However, they cannot be used for salaries or establishment expenditures. This provides flexibility for grassroots governments to prioritize projects such as rural roads, agriculture, health, education, and local infrastructure.

• Tied Grants: These are earmarked for essential services, specifically:

  • Sanitation and ODF sustainability – including household waste management, treatment of human excreta, and fecal sludge management.

  • Water-related initiatives – including supply of safe drinking water, rainwater harvesting, and water recycling projects.

Strengthening Local Governance

The XV FC grants aim to empower Village Councils and Panchayats by giving them direct access to funds for planning and executing development works tailored to local needs. This strengthens decentralized governance, ensuring that funds are not only allocated at the national and state levels but also flow down to the smallest administrative units for immediate impact.

For Mizoram, which has a large rural population spread across difficult terrain, these funds play a critical role in improving local infrastructure, sanitation facilities, drinking water supply, and rural livelihoods.

Constitutional Mandate

The Eleventh Schedule of the Constitution assigns 29 subjects to Panchayati Raj Institutions (PRIs), ranging from agriculture, education, and health to social welfare and infrastructure. Untied Grants allow RLBs to address these subjects based on community-driven priorities.

This financial devolution reflects the Union Government’s effort to strengthen cooperative federalism and ensure that rural institutions become active partners in India’s journey towards inclusive growth.

Looking Ahead

The release of Untied and Tied Grants under the XV FC will continue through FY 2025–26, ensuring stability in funding rural governance. With structured support from the Centre, Mizoram’s Village Councils are expected to implement projects that directly improve the quality of life in villages, aligning with national goals such as Sustainable Development Goals (SDGs) and the vision of a Viksit Bharat by 2047.