Centre releases Rs 1203.60 crore to Panchayati Raj Department, Bihar, under 15th Finance Commission grant.
Photo Credit: The Suncity News
Patna, March 25, 2026: The Centre has released Rs 1203.60 crore as the second installment of the 15th Finance Commission’s tied grant for three-tier Panchayati Raj Institutions (PRIs) in Bihar for the financial year 2025-26.
Additionally, Rs 2.09 crore has been disbursed from the previously withheld portion of the first installment for three block panchayats and seven gram panchayats that have now met the eligibility criteria.
On March 24, 2026, the Centre also released a total of Rs 4,383.08 crore—comprising both tied and untied grants—to rural local bodies across Bihar, Uttar Pradesh, Jharkhand, and Maharashtra.
Bihar’s Panchayati Raj minister appreciated the centre for the fund release:
Welcoming the move, Bihar Panchayati Raj Minister Deepak Prakash said the funds will significantly boost grassroots development.
He emphasized that the financial assistance will strengthen essential services such as sanitation, maintenance of Open Defecation Free (ODF) status, and provision of safe drinking water across Gram Panchayats, Panchayat Samitis, and Zila Parishads.
“The funds will accelerate development works at the local level and ensure their effective and timely implementation based on community needs,” he said.
Deepak Prakash met the Union Minister in the last week of January:
Earlier, on January 27, 2026, Deepak Prakash had met Union Panchayati Raj Minister Rajiv Ranjan Singh alias Lalan Singh to raise key financial concerns.
He had requested the release of 2622.65 crore as the remaining health sector grant recommended by the Finance Commission, along with Rs 803.79 crore and additional annual financial support for the maintenance of Panchayat Sarkar buildings.
Bihar’s Panchayati Raj Minister also urged the Centre to release Rs 83 crore under the Rashtriya Gram Swaraj Abhiyan and sought increased budgetary allocation to strengthen its infrastructure, including computer labs and e-governance systems at district and Panchayat levels.
Following the release of funds, the minister expressed gratitude to the Centre, stating that the assistance would empower Panchayati Raj institutions and enhance the delivery of welfare schemes to rural populations.
The Bihar government reiterated that its primary objective is to strengthen grassroots governance and ensure that development benefits reach the last mile efficiently.
EOM.
