Grant of Rs.12,351 crore released for Rural Local Bodies



Quick Summary
The Ministry of Finance has released a second instalment of Rs.12,351 crore to 18 states for Rural Local Bodies (RLBs) in the financial year 2020-21. This funding, based on the 15th Finance Commission's recommendations, aims to help RLBs create community assets and improve their financial standing. The grants are designated for village, block, and district levels, with specific allocations for basic services like sanitation and drinking water.

Total grant of Rs. 45,738 crore has been released to Rural Local bodies so far in 2020-21 The Department of Expenditure, Ministry of Finance has released an amount of Rs.12,351.5 crore to 18 States for providing grants to the Rural Local Bodies (RLBs). This amount is the 2ndinstalment of basic grants released in the financial year 2020-21. The grant has been released to 18 States who have provided the Utilisation Certificate for the first instalment and on the recommendation of the Ministr
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FAQ :

A total of Rs. 45,738 crore has been released to Rural Local Bodies so far in 2020-21. The latest release was Rs. 12,351.5 crore.

The Department of Expenditure, Ministry of Finance, released the grant.

Eighteen states received the Rs. 12,351.5 crore grant.

The grants are intended to help create community assets and improve the financial viability of Rural Local Bodies. They are provided to all three tiers of Panchayati Raj: Village, Block, and District.

The 15th Finance Commission recommended basic grants (untied, for location-specific needs excluding salaries) and tied grants (for sanitation, ODF maintenance, drinking water, rainwater harvesting, and water recycling).

States are required to transfer the grants to the Rural Local Bodies within 10 working days of receiving them from the Union Government. Delays beyond this period require the release of grants with interest.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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