MINISTRY OF FINANCE

Swachh Bharat Mission Grameen Phase II 15th Finance Commission Grants and Sanitation Guidelines

By TEAM CIRCULAR EXPRESS • 17 Aug 2026

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This circular outlines the 15th Finance Commission grants for Rural Local Bodies under Swachh Bharat Mission (Grameen) Phase II for 2021-2026. It details the distribution of tied grants for drinking water, rainwater harvesting, water recycling, and sanitation maintenance across three tiers of Panchayati Raj Institutions. The document specifies eligibility criteria, including the requirement for online audited accounts and the constitution of State Finance Commissions. It also provides comprehensive checklists for development plans at the Gram, Block, and District levels. Finally, it lists various sanitation-related activities and their potential funding sources, including convergence with MGNREGS.

purpose of issuance

To provide guidelines on the utilization of 15th Finance Commission grants for sanitation and water supply under Swachh Bharat Mission (Grameen) Phase II.

Most Important Details

Grants are tied to sanitation and water supply; 15th FC grants are not available for Union Territories; States must constitute State Finance Commissions by March 2024 to remain eligible; funds are distributed across Gram, Block, and District Panchayats with specific percentage ranges.

purpose of issuance_1

To define the eligibility criteria and planning process for Rural Local Bodies to access and manage 15th Finance Commission funds.

Most Important Details_1

States must ensure at least 25% of rural local bodies have online provisional and audited accounts to avail full grants; planning must be executed via eGramSwaraj software.

Regards, Circular Express