Odisha’s share in grants for Rural Local Bodies has increased under the 16th Finance Commission, with the state government clarifying that the allocation has not declined as has been suggested in some quarters. According to the Panchayati Raj and Drinking Water Department, Odisha’s share has risen from 3.72% under the 15th Finance Commission to 4.30% under the 16th Finance Commission. Under the latest Finance Commission, Odisha’s Rural Local Bodies will receive ₹18,715 crore over five years, covering the period from 2026-27 to 2030-31. The state received around ₹1,843 crore per year during the 15th Finance Commission period, compared with approximately ₹3,743 crore annually under the 16th Finance Commission. The state government therefore maintained that the 16th Finance Commission has delivered a higher share and substantially higher annual allocation for Odisha’s Rural Local Bodies, rather than representing a reduction in the state’s share.