Centre disburses over Rs 2,461 cr as XV Finance Commission grants to eight States including Sikkim

Sikkim receives Over Rs 9.90 cr for rural development

GANGTOK, (PIB): The Union government has released XV Finance Commission (XV-FC) tied grants during the financial year 2025–26 to Rural Local Bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Punjab, and Sikkim. It has also released withheld portions of both tied and untied grants to Himachal Pradesh, Odisha, Sikkim, and Tripura. The release covers allocations pertaining to different financial years and aims to further strengthen rural local governance.

As part of this release, Sikkim has received Rs 9.90 crore in tied grants under the XV Finance Commission for rural local bodies. This aims to strengthen rural governance and support key services like sanitation, drinking water, and water recycling in the State.

The grants are part of the second installment for FY 2025-26 and will benefit all 6 eligible District Panchayats and 199 eligible Gram Panchayats in Sikkim. Additionally, a withheld portion of Rs 24.75 lakh from the first installment has been released for one additional eligible District Panchayat.

The release is made by the Ministry of Finance, based on recommendations from the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation). The grants are released in two installments annually.

The tied grants will be utilized for sanitation and maintenance of ODF status, including household waste management and fecal sludge management, and supply of drinking water, rainwater harvesting, and water recycling.

The move is expected to boost rural development in Sikkim, enhancing the quality of life for rural communities.