Centre Sanctions Financial Assistance to Odisha for Strengthening Panchayati Raj Institutions

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Bhubaneswar, 5th Nov 2025: The Central Government has released funds for Panchayati Raj institutions in Odisha, granting over ₹444 crore under the 15th Finance Commission recommendations.

The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) of the Government of India recommend grants to states for Panchayati Raj Institutions (PRIs) and rural local bodies under the 15th Finance Commission. The Union Ministry of Finance releases these grants every financial year in two installments.

Except for salary and establishment expenditures, the Panchayati Raj and Drinking Water Department may utilize the untied (unconditional) grants to meet various needs listed under the 29 subjects of the 11th Schedule of the Constitution.

On the other hand, tied (conditional) grants are meant for essential services such as sanitation, waste management, maintenance of Open Defecation Free (ODF) status, drinking water supply, rainwater harvesting, and water recycling.

A total of Rs 342.59 crore has been released as the second installment of grants to 20 Zilla Parishads (District Panchayats), 296 Panchayat Samitis (Block Panchayats), and 6,734 Gram Panchayats across the state.

Additionally, an amount of Rs 101.78 crore has been released to Odisha as the withheld portion of the first installment for the financial year 2025–26. This amount has been distributed among 20 Zilla Parishads, 233 Panchayat Samitis, and 649 Gram Panchayats.

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