Nagaland has not reported any utilization of funds released to Rural Local Bodies under the Fifteenth Finance Commission (FFC) grants, according to data presented in Parliament on March 10.
According to a written reply in the Lok Sabha by Union Minister for Panchayati Raj Rajiv Ranjan Singh alias Lalan Singh, Nagaland was allocated Rs 611 crore under the FFC grants for Panchayati Raj Institutions. Out of this, Rs 265 crore has been released to the state as of March 5, 2026, but utilization has been reported as zero on the eGramSwaraj portal.
The funds are provided to Rural Local Bodies through state governments under the recommendations of the Fifteenth Finance Commission. They are meant to strengthen local governance and support development activities at the grassroots level.
According to the Ministry of Panchayati Raj, the FFC grants consist of two components, tied grants and untied grants.
The untied grant accounts for 40 percent of the total allocation and can be used by Rural Local Bodies to address location specific needs under the 29 subjects listed in the Eleventh Schedule of the Constitution. However, these funds cannot be used for salaries or other establishment expenditure.
The tied grant, which forms 60 percent of the allocation, is meant for basic services. These include sanitation and maintaining Open Defecation Free status, management and treatment of household waste and human excreta, faecal sludge management, and drinking water supply. The tied component can also be used for rainwater harvesting and water recycling.
The ministry stated that if a local body has already met the requirements under one category, the funds can be utilized for the other category.
Across the country, the total allocation under the Fifteenth Finance Commission for Rural Local Bodies stands at Rs 2,97,555 crore. As of March 5, 2026, Rs 2,63,237.61 crore has been released and Rs 2,12,385.33 crore has been reported as utilized.
The utilization figures are based on data reported by Rural Local Bodies through the eGramSwaraj portal, the government’s digital platform for monitoring local governance and fund usage.
