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The Union Government released INR 410.76 crore to rural local bodies in Andhra Pradesh as the first installment of the Fifteenth Finance Commission (15th FC) grants for the financial year 2025-26. The funds will support all 13 District Panchayats, 650 Block Panchayats, and over 13,000 Gram Panchayats. The grants are divided into untied and tied categories, enabling local bodies to address location-specific needs, improve sanitation, water management, and other essential services, thereby strengthening governance and infrastructure at the grassroots level.
The Union Government has released INR 410.76 crore to rural local bodies in Andhra Pradesh under the first installment of the Fifteenth Finance Commission (15th FC) grants for the financial year 2025-26. This allocation is aimed at improving local governance and infrastructure development across the state. Advertisement
The funds are intended for all 13 District Panchayats (Zilla Praja Parishads), 650 eligible Block Panchayats (Mandal Praja Parishads), and 13,092 eligible Gram Panchayats out of the total 13,327 in the state. According to the Ministry of Panchayati Raj, the grants are meant to strengthen the capacity of local governments to deliver essential services efficiently and in accordance with constitutional provisions.
The grants are classified into untied and tied categories. Untied funds can be used by Panchayati Raj Institutions (PRIs) for location-specific needs across 29 subjects listed in the Eleventh Schedule of the Constitution, excluding salaries and establishment expenses. Tied grants are earmarked for specific services, including sanitation, maintaining Open Defecation Free (ODF) status, household waste management, faecal sludge treatment, drinking water supply, rainwater harvesting, and water recycling.
These funds form part of the government's ongoing effort to strengthen rural infrastructure, improve public service delivery, and empower local communities. By directly funding local bodies, the government aims to ensure that planning and development are decentralized, responsive to local needs, and capable of improving quality of life in rural areas.
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