GANGTOK (PIB) — The Centre has disbursed over Rs 2,461 crore as XV Finance Commission (XV-FC) grants to eight states, including Sikkim, with the Ministry of Finance releasing tied and withheld portions of grants during the financial year 2025–26. As part of this release, Sikkim received Rs 9.90 crore in tied grants for rural local bodies, the government said. (Published April 1, 2026; last updated March 31, 2026.)
The tied grants for FY 2025–26 form the second installment and will benefit all six eligible District Panchayats and 199 eligible Gram Panchayats in Sikkim. In addition, a withheld portion of Rs 24.75 lakh from the first installment was released for one additional eligible District Panchayat. The Centre released tied grants to rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Punjab and Sikkim, and cleared withheld portions-both tied and untied-to Himachal Pradesh, Odisha, Sikkim and Tripura.
The release follows recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation), and the XV-FC allocations are disbursed in two installments each year. The Ministry of Finance said the tied grants are earmarked for sanitation and maintaining open-defecation-free (ODF) status, household waste management, fecal sludge management, and for improving drinking water supply, rainwater harvesting and water recycling.
Officials said the funding is intended to strengthen rural governance and basic services at the local level. The government expects the grants to accelerate rural development in Sikkim and enhance the quality of life for its rural communities.
Original Source: https://www.sikkimexpress.com/news-details/centre-disburses-over-rs-2461-cr-as-xv-finance-commission-grants-to-eight-states-including-sikkim
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