The Finance Commission is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements. This grant is fully sponsored by Government of India.

Present 15th Finance Commission will cover a period of five years from the year 2021-22 to 2025-26.

Category of Fund :

• Basic Untied Grants - 40% of the total allocation releases in two installments.
• Basic Tied Grants - 60% of the allocation releases in two installments.

Allotment of Fund to the PRI bodies :

The 15th CFC Grant allotted to the 3-Tier PRI bodies in the following manner:

• Zilla Parishads - 15% Of Total Grant
• Panchayat Samities - 15% Of Total Grant
• Gram Panchayats - 70% Of Total Grant

Scope of Work :

The Basic Untied Grants and can be used by the local bodies for location felt needs, except of Salary or other establishment expenditure. It include the following :

• Immunization of children.
• Construction, repair and maintenance of roads within / inter Gram Panchayat(s).
• Construction, repair and maintenance of footpath within / inter Gram Panchayat(s).
• Construction, repair and maintenance of LED street lights and solar lighting within / inter Gram Panchayat(s).
• Construction, repair and maintenance of crematorium and acquisition of land for crematorium grounds, upkeep of dead body burial ground.
• Providing sufficient and high bandwidth Wi-Fi digital network services within GP.

The Basic Tied Grants and can be used by the local bodies for location felt needs, except of Salary or other establishment expenditure. It include the following:

• Sanitation and maintenance of open defecation free (ODF) status.
• Supply of drinking water , rain water harvesting and water recycling.
• Storm Water Drainage and water logging management.