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Ministry of Finance releases Rs 13,385.70 crore to 25 States for providing grants to rural local bodies

31 Aug 2021 Evaluate

The Department of Expenditure, Ministry of Finance has released an amount of Rs. 13,385.70 crore to 25 States for providing grants to the Rural Local Bodies.  This Grant-in-aid is the 1st installment of Tied grants of the year 2021-22. The grants have been released as per the recommendations of the 15th Finance Commission.

Out of the total Grant-in-aid allocated for Panchayati Raj institutions, 60 percent is ‘Tied Grant’.  It’s earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation. Remaining 40 percent 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.

As per the notification, 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.

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