The Union government has released ₹127.586 crore to Tamil Nadu as the first instalment of grants for rural local bodies for the financial year 2025–26.
This amount is part of the Fifteenth Finance Commission Grants recommended for Panchayati Raj Institutions.
The grants cover 2,901 eligible gram panchayats, 74 eligible block panchayats, and nine eligible district panchayats in Tamil Nadu.
The Ministry of Panchayati Raj and the Ministry of Jal Shakti recommend the grants to the Ministry of Finance.
The grants are released by the Ministry of Finance in two instalments during a financial year.
The untied grants are meant for location-specific felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution.
These grants cannot be used for salaries or other establishment-related costs.