Odisha Secures Over ₹53 Crore from 15th Finance Commission for Rural Development

Significant Financial Support for Panchayati Raj Institutions

Bhubaneswar: The central government has allocated more than ₹1,536 crore in grants from the 15th Finance Commission (XV-FC) to enhance the capabilities of Panchayati Raj Institutions (PRIs) across eight states. Odisha has been granted ₹53.13 crore specifically aimed at bolstering rural governance and essential services. As per the Ministry of Panchayati Raj, these funds, which include both tied and untied grants, were distributed during the financial year 2025-26 to states such as Arunachal Pradesh, Goa, Gujarat, Jharkhand, Odisha, Rajasthan, Telangana, and Uttarakhand to improve local governance in rural areas.

Odisha's allocation of ₹53.13 crore falls under tied grants, which represent the withheld portions from the first and second installments for the fiscal year 2025-26. This financial support is set to benefit 10 eligible zilla parishads, 17 panchayat samitis, and 40 gram panchayats, along with 15 additional gram panchayats that will receive funds from the second installment. The initiative is anticipated to enhance grassroots governance and expedite the provision of fundamental civic services in rural regions of the state. Tied grants are designated for vital rural infrastructure and services, while untied grants offer local bodies the flexibility to address specific needs across 29 different subjects.