Finance Ministry releases Rs 13,385.70 Crore Grant-in-aid For Rural Local Bodies



Quick Summary
The Finance Ministry has disbursed a significant grant of £13,385.70 crore to 25 states for their Rural Local Bodies. This funding, the first instalment of tied grants for 2021-22, is based on the 15th Finance Commission's recommendations. These grants are specifically allocated to enhance sanitation services, maintain open-defecation free status, and improve drinking water supply, rainwater harvesting, and water recycling initiatives in rural areas.

Grant-in-aid amounting to Rs. 13,385.70 crore released to Rural Local Bodies

Total grant amounting to Rs. 25,129.98 crore released to Rural Local bodies so far in 2021-22

The Department of Expenditure, Ministry of Finance has on Monday 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.

Tied grants are released to the Rural Local Bodies (RLBs) for improving two critical services namely (a) Sanitation and maintenance of open-defecation free (ODF) status and (b) supply of drinking water, rain water harvesting and water recycling.

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.

Tied grants are meant to ensure 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.

Finance Ministry Releases £13,385 Crore Grant for Rural Bodies

State-wise amount of Rural Local Bodies (RLB) grants released today and total RLB grants released so far is given below:

S. No.

Name of the State

Amount of RLB Grants released on 31-08-2021

(Rs. in crore)

Total RLB Grants released so far in 2021-22.

(Rs. in crore)

1

Andhra Pradesh

581.7

969.50

2

Arunachal Pradesh

51

142.75

3

Assam

355.8

593.00

4

Bihar

1112.7

1854.50

5

Chhattisgarh

322.5

537.50

6

Gujarat

708.6

1181.00

7

Haryana

280.5

467.50

8

Himachal Pradesh

95.1

158.50

9

Jharkhand

374.7

624.50

10

Karnataka

713.1

1188.50

11

Kerala

360.9

601.50

12

Madhya Pradesh

883.2

1472.00

13

Maharashtra

1292.1

2153.50

14

Manipur

39.3

65.50

15

Mizoram

20.7

34.50

16

Orissa

500.7

834.50

17

Punjab

307.8

860.00

18

Rajasthan

856.2

2392.50

19

Sikkim

9.3

15.50

20

Tamil Nadu

799.8

2783.23

21

Telangana

409.5

682.50

22

Tripura

42.3

70.50

23

Uttar Pradesh

2162.4

3604.00

24

Uttarakhand

127.5

212.50

25

West Bengal

978.3

1630.50

x

Total

13,385.70

25,129.98

FAQ :

The Finance Ministry has released a grant-in-aid of £13,385.70 crore to Rural Local Bodies.

A total of £25,129.98 crore has been released to Rural Local Bodies so far in the 2021-22 financial year.

Tied grants are released to Rural Local Bodies for improving two critical services: sanitation (including maintenance of open-defecation free status) and the supply of drinking water, rainwater harvesting, and water recycling.

Sixty percent of the total grant-in-aid allocated for Panchayati Raj institutions is designated as 'Tied Grant'.

States are required to transfer the grants to the Rural Local Bodies within 10 working days of receiving them from the Union Government.




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