Union Government Boosts Tamil Nadu’s Rural Development with First Grant Installment

The Union government has officially transferred ₹127.586 crore to Tamil Nadu, representing the initial tranche of the Fifteenth Finance Commission Grants designated for rural local bodies during the 2025-26 fiscal year. This significant financial injection is set to benefit 2,901 eligible gram panchayats, 74 eligible block panchayats, and nine eligible district panchayats across the state, according to an official statement from the Union Ministry of Panchayati Raj. The process involves the Government of India, working through the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), recommending these Finance Commission grants to various states for their Rural Local Bodies (RLBs) or Panchayati Raj Institutions (PRIs). Subsequently, the Ministry of Finance is responsible for the actual disbursement of these funds. These grants are typically recommended and released in two installments within a financial year. Importantly, these ‘untied’ grants are designed to be flexible, allowing them to be used for specific, localized needs as identified by the communities themselves. They fall under the Twenty-Nine (29) subjects detailed in the Eleventh Schedule of the Constitution. However, it’s crucial to note that these funds cannot be allocated towards salaries or other establishment-related expenses.