The Finance Ministry has released over 13 thousand 385 crore rupees to 25 states for providing grants to the Rural Local Bodies. The grants have been released as per the recommendations of the 15th Finance Commission. Over 25 thousand 129 crore rupees have been released to Rural Local bodies in this financial year so far.
This Grant-in-aid is the first installment of tied grants of the year 2021-22. Tied grants are released to the Rural Local Bodies for improving two critical components. These components are related to sanitation, maintenance of Open Defecation Free status, supply of drinking water, rain water harvesting and water recycling.
Out of the total Grant-in-aid allocated for Panchayati Raj institutions, 60 per cent is tied grant. It’s earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation. Remaining 40 per cent is untied grant and is to be utilized by the Panchayati Raj institutions.
The states are required to transfer the grants to the Rural Local Bodies within 10 working days of their receipt from the Union Government.