Lok Sabha Question No. 2781 (UNSTARRED), answered on 2026-03-10
Subject: Utilisation of Funds by Panchayati Raj Institutions
Ministry: PANCHAYATI RAJ
Asked by: Shri Rajeev Rai

## GOVERNMENTOF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 2781

ANSWERED ON 10.03.2026

## UTILISATION OF FUNDS BY PANCHAYATI RAJ INSTITUTIONS

## 2781: SHRI RAJEEV RAI:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) the norms and rules governing the utilization of funds allocated to Panchayati Raj Institutions (PRIs) under different programmes;
- (b) whether the funds allocated to the States under these programmes which have been utilized fully by them;
- (c) if not, the reasons therefore, State-wise; and
- (d) the action taken by the Government to ensure full utilization of funds allocated under these programmes?

## ANSWER

## THE MINISTER OF PANCHAYATI RAJ

## (SHRI RAJEEV RANJAN SINGH ALIAS LALAN SINGH)

(a) The Central Finance Commission's devolved funds are allocated, presently under the Fifteenth Finance Commission (FFC), for the Panchayati Raj Institutions (PRIs) through the States. The FFC Grants have two components-Tied and Untied.

The untied grant, which is 40% of the total grant, can be used by RLBs for their locationspecific felt needs under the 29 subjects enshrined in the Eleventh Schedule of the Constitution, except for salary or other establishment expenditure. The tied grant, which is 60% of total grants, can be used for providing basic services of (a) sanitation and maintenance of Open Defecation Free (ODF) status, which includes management and treatment of household waste, human excreta and faecal sludge management and (b) supply of drinking water, rainwater harvesting and water recycling. If any local body has fully saturated the needs of one category, it can utilise the funds for the other category.

(b) to (d) A state-wise statement indicating allocation, release and utilization of funds under the FFC grants is at Annexure .

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## Annexure

Annexure referred to in reply to Part (b) to (d) of the Lok Sabha Unstarred Question No. 2781 answered on 10.03.2026 regarding Utilisation of Funds by Panchayati Raj Institutions

State-wise Allocation, Release and Utilization of Funds to/by Rural Local Bodies under the Fifteenth Finance Commission

(Rs. in crore)

| State             | Allocation   | Release (as on 05.03.2026)   | Utilization (as on 05.03.2026)   |
|-------------------|--------------|------------------------------|----------------------------------|
| Andhra Pradesh    | 12,856.00    | 12,680.82                    | 6,404.17                         |
| Arunachal Pradesh | 1,131.00     | 436.40                       | 295.26                           |
| Assam             | 7,857.00     | 7,108.76                     | 3,724.85                         |
| Bihar             | 24,579.00    | 23,339.65                    | 17,068.30                        |
| Chhattisgarh      | 7,123.00     | 6,514.69                     | 6,903.87                         |
| Goa               | 368.00       | 214.59                       | 77.72                            |
| Gujarat           | 15,650.00    | 14,367.68                    | 11,248.14                        |
| Haryana           | 6,193.00     | 5,820.35                     | 4,377.36                         |
| Himachal Pradesh  | 2,102.00     | 1,983.57                     | 1,632.74                         |
| Jharkhand         | 8,274.00     | 6,500.94                     | 5,344.92                         |
| Karnataka         | 15,756.00    | 11,905.89                    | 11,053.51                        |
| Kerala            | 7,972.00     | 7,321.50                     | 4,093.90                         |
| Madhya Pradesh    | 19,511.00    | 16,059.99                    | 13,405.33                        |
| Maharashtra       | 28,540.00    | 23,097.05                    | 19,411.29                        |
| Manipur           | 867.00       | 242.50                       | 96.95                            |
| Meghalaya         | 893.00       | 276.50                       | 14.70                            |
| Mizoram           | 455.00       | 395.80                       | 371.84                           |
| Nagaland          | 611.00       | 265.00                       | 0.00                             |
| Odisha            | 11,058.00    | 10,965.89                    | 8,054.71                         |
| Punjab            | 6,798.00     | 5,884.22                     | 6,221.17                         |
| Rajasthan         | 18,915.00    | 16,442.90                    | 13,015.47                        |
| Sikkim            | 207.00       | 194.63                       | 138.37                           |
| Tamil Nadu        | 17,666.00    | 15,419.93                    | 12,125.58                        |
| Telangana         | 9,048.00     | 6,697.07                     | 2,669.31                         |
| Tripura           | 937.00       | 936.31                       | 963.83                           |
| Uttar Pradesh     | 47,764.00    | 45,408.38                    | 42,968.96                        |
| Uttarakhand       | 2,813.00     | 2,435.74                     | 1,837.90                         |
| West Bengal       | 21,611.00    | 20,320.85                    | 18,865.21                        |
| Total             | 297,555.00   | 263,237.61                   | 212,385.33                       |

Note: The utilisation is as reported by the RLBs on eGramSwaraj Portal.

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