Why in the News?
The 16th Finance Commission has recommended ₹4.35 lakh crore for Rural Local Bodies (RLBs) for 2026–31, following record fund releases under the 15th Finance Commission.
Key Highlights
15th Finance Commission (2020–26)
- Total grant recommended: ₹2,97,555 crore
- Funds released: ₹2,82,632 crore
- Release percentage: 94.94% (Highest ever)
States Receiving 100% Allocation
- Assam
- Kerala
- Mizoram
- Tripura
- Uttar Pradesh
16th Finance Commission Grants (2026–31)
- Total allocation: ₹4.35 lakh crore
- Breakup:
- Basic Grants: ₹3.48 lakh crore
- Rural Local Body Performance Grant: ₹43,524 crore
- State Performance Grant: ₹43,524 crore
Distribution Pattern
- 90% funds → Gram Panchayats
- 10% → Block Panchayats
- 10% → District Panchayats
| [2025] Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? 1 It has recommended grants of ₹4,800 crores from the year 2022–23 to 2025–26 for incentivizing States to enhance educational outcomes. 2 45% of the net proceeds of Union taxes are to be shared with States. 3 ₹45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below: (a) I, II and III (b) I, II and IV (c) I, III and IV (d) II, III and IV |
