Ministry of Finance releases grant of Rs. 4,608 crore for Local Bodies on 31st March 2021



Quick Summary
The Ministry of Finance has disbursed a grant of £4,608 crore to local bodies across India. This funding is split between Rural Local Bodies (£2,660 crore) and Urban Local Bodies (£1,948 crore), as recommended by the 15th Finance Commission. A portion of these grants is specifically earmarked for improving air quality, solid waste management, and sanitation services.

Rural Local Bodies got Rs. 2,660 crore and Urban Local Bodies got Rs. 1,948 crore Total grant of Rs. 60,750 crore for Rural and Rs. 26,710 crore for Urban Local Bodies released in 2020-21 Part of the grant is tied to improvement in air quality, solid waste management and sanitation The Department of Expenditure, Ministry of Finance on Wednesday released an amount of Rs. 4,608 crore to States for providing grant-in-aid to the local bodies. The grants are both for the Rural Local Bodies (
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FAQ :

A total of £4,608 crore was released to local bodies by the Ministry of Finance on 31st March 2021.

Rural Local Bodies received £2,660 crore, and Urban Local Bodies received £1,948 crore.

For the financial year 2020-21, a total of £87,460 crore was released to 28 States as local body grants.

Yes, part of the grants are tied to improvements in air quality, solid waste management, and sanitation. For Million Plus cities, grants are linked to ambient air quality targets and water/waste management, monitored by the Ministry of Environment, Forest and Climate Change and Ministry of Housing and Urban Affairs respectively.

Rural Local Body grants can be used for location-specific needs (basic grants) or for sanitation, maintaining open-defecation free status, drinking water supply, rainwater harvesting, and water recycling (tied grants).

For Non-Million Plus cities, 50% of the grant is basic, and the other 50% is tied to drinking water (including rainwater harvesting and recycling) and solid waste management.




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