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

Total grant amounting to ₹ 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 15^th 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.

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

Tied grant release ensures funds for sanitation and drinking water with mandatory ten-working-day transfer to local bodies. The Department of Expenditure released the first instalment of central grant-in-aid to Rural Local Bodies to supplement sanitation and drinking water services. Sixty percent of Panchayati Raj allocations are Tied Grants for water and sanitation priorities, while forty percent are Untied Grants for local discretionary use (excluding salaries). States must transfer funds to Rural Local Bodies within ten working days or pay interest for delay.