The Centre has released Rs 13,385 crore to 25 states for providing grants to their respective rural local bodies. This grant-in-aid is the first instalment for the rural institutions for the current financial year.
These grants are given to rural local bodies for improving critical services like sanitation and maintenance of open defecation free status and drinking water supply along with rain water harvesting and water recycling systems.
Out of the total aid allocated for Panchayati Raj institutions, 60 per cent is “tied grant” and meant for national priority areas like drinking water supply, rainwater harvesting and sanitation. The remaining amount is called “untied grant” and it is to be used by these rural institutions as per their discretion for local needs.
Tied grants are meant to ensure availability of additional funds to rural local bodies and these are over and above the funds allocated by the Centre and states for sanitation and drinking water under the Centrally Sponsored Scheme head.
The funds have been released by the Department of Expenditure of the Ministry of Finance.