UTILISATION OF FIFTEENTH FINANCE COMMISSION TIED GRANTS

The Ministry of Panchayati Raj, via the Department of Drinking Water & Sanitation, reported that the 15th Finance Commission (FC‑XV) allocated a total of Rs 2.36 lakh crore as tied grants to Rural Local Bodies in 28 states for 2021‑22 to 2025‑26, with 60 % (Rs 1.42 lakh crore) earmarked for drinking water, rain‑water harvesting, water recycling and sanitation/ODF maintenance (Rs 0.71 lakh crore each). The release of these grants is contingent on states meeting criteria in the operational guidelines. Andhra Pradesh received the full interim amount of Rs 1,312.5 crore in 2020‑21 and subsequent yearly releases as detailed in the annexure. Central records do not maintain district‑wise or component‑wise utilisation data, and the FC‑XV cycle ended on 31 Mar 2026, after which pending amounts lapsed. The department has issued guidance for the 16th Finance Commission tied grants.