Odisha gets over Rs 2400000000 for development of rural local bodies

Odisha has received Rs 240.81 crore as the first installment of the Fifteenth Finance Commission’s untied grant for rural local bodies for the financial year 2025-26. The state is among three recipients, along with Mizoram and Tripura, to get the release in this phase.

As per official sources, the Ministry of Panchayati Raj and the Ministry of Jal Shakti recommended the release of funds, which will be distributed among 6,085 gram panchayats and 63 panchayat samitis across Odisha.

Similarly, Mizoram has received Rs.14.2761 crore for 827 eligible Village Councils as part of the 2023–24 grant while Tripura has been provided Rs. 29.75 crore for 606 eligible Gram Panchayats, 35 eligible Block Panchayats, 8 eligible Zilla Parishads along with all 587 Village Committees and 40 eligible Block Advisory Committees of the state as part of the 1st installment of Untied Grants of the financial year 2025–26.

The untied grant is meant to strengthen Panchayati Raj Institutions by allowing them to take up projects addressing local needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or routine establishment expenses.

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The Fifteenth Finance Commission allocates such grants in two installments every year. While untied grants give flexibility to rural bodies, tied grants are earmarked for essential services such as sanitation, solid and liquid waste management, and safe drinking water supply including rainwater harvesting and recycling.