The Ministry of Panchayati Raj provided state-wise details of grants released under the 15th Finance Commission to Rural Local Bodies (RLBs) across 28 states for the period 2021-26. The total allocation stood at ₹236,805 crore, with ₹221,882.34 crore actually released and ₹14,922.66 crore remaining unreleased due to non-fulfillment of prescribed eligibility conditions by concerned State Governments or Rural Local Bodies.
Andhra Pradesh specifically received ₹10,055.82 crore of its ₹10,231 crore allocation, with ₹175.18 crore unreleased. Other states with significant unreleased amounts include Karnataka (₹3,850.11 crore), Maharashtra (₹2,420.96 crore), Tamil Nadu (₹2,246.07 crore), Rajasthan (₹1,661.69 crore), and Telangana (₹1,090.55 crore). Several states including Assam, Kerala, Mizoram, Tripura, and Uttar Pradesh achieved 100% release of their allocated funds.
The document highlights Andhra Pradesh's exceptional performance in Gram Panchayat Development Plan (GPDP) compliance through the eGramSwaraj portal. In 2025-26, Andhra Pradesh achieved 99.95% compliance (13,320 of 13,327 GPs), significantly exceeding the national average of 96.54%. This high performance was consistent over three years: 99.83% in 2023-24 (13,305 of 13,328 GPs) and 99.86% in 2024-25 (13,310 of 13,328 GPs).
Regarding eGramSwaraj-PFMS linked fund transfers, Andhra Pradesh demonstrated strong adoption with 13,041 of 13,327 GPs (approximately 98%) utilizing online payment systems in 2025-26, processing ₹1,575.35 crore. This followed similar high adoption rates in previous years: 13,095 GPs processing ₹968.711 crore in 2023-24 and 13,002 GPs processing ₹1,636.12 crore in 2024-25.
The Ministry referenced its February 2025 report "Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024" which showed that devolution to Panchayats increased from 39.9% to 43.9% between 2013-14 and 2021-22. The report assessed states based on six dimensions: Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability.
The Ministry emphasized that Panchayat is a state subject under "Local Self Government" but promotes decentralized planning through the GPDP framework, which involves participatory processes with Gram Sabhas and convergence of various Central and State schemes. Once Finance Commission recommendations are accepted by the Government and laid before Parliament, they cannot be altered.