Finance Ministry releases Rs 13,386 crore to 25 states as grant to RLBs

Tied grants are released to the rural local bodies (RLBs) for improving two services — Sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling.

“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,” the ministry said in a statement.

This grant-in-aid is the first instalment 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 meant to ensure the availability of additional funds to the rural local bodies over and above the funds allocated by the Centre and states 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.