Ministry of Finance grants Rs 13,385.70 crore to rural local bodies

The Ministry of Finance's Department of Expenditure released an amount of Rs. 13,385.70 crore to 25 States for providing grants to the Rural Local Bodies on Monday.

New Delhi: The Ministry of Finance's Department of Expenditure released an amount of Rs.13,385.70crore to 25 States for providing grants to the Rural Local Bodies on Monday. The grant-in-aid released as per 15th Finance Commission's recommendations is the first instalment of tied grants of the year 2021-22, as per press release.

The tied grants released to Rural Local Bodies (RLBs) are meant for improving sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling. Out of the total grant-in-aid allocated for Panchayati Raj institutions, 60 per cent is ‘Tied Grant’. While, the remaining 40 per cent is ‘Untied Grant’ and is to be utilized at the discretion of the Panchayati Raj institutions for location-specific felt needs, except for payment of salaries.

Tied grants are meant to ensure the availability of additional funds to the Rural local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under the Centrally Sponsored Schemes.

The States are required to transfer the grants to the Rural local bodies within 10 working days of their receipt from the Union Government. Any delay beyond 10 working days requires the State Governments to release the grants with interest.