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Ministry of Finance releases Rs 8,923.8 crore to 25 states for providing grants to rural local bodies

10 May 2021 Evaluate

With an aim to augment resources to the three tiers of Panchayats for fighting the contagion, the Department of Expenditure, Ministry of Finance, has released an amount of Rs 8,923.8 crore to 25 States for providing grants to the Rural Local Bodies (RLBs). The grants are meant for all the three tiers of Panchayati Raj Institutions - village, block and district.

The notification from the Ministry of Finance also noted that the amount released is the first instalment of the ‘Untied Grants’ for the year 2021-22. It may be utilised by the RLBs, among other things, for various prevention and mitigation measures needed to combat the COVID-19 pandemic.

As per the recommendations of the 15th Finance Commission, the 1st instalment of untied grants was to be released to the States in the month of June, 2021. However, in view of the ongoing COVID-19 pandemic situation and at the recommendation of the Ministry of Panchayati Raj, the Ministry of Finance has decided to release the grant in advance of the normal schedule.

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