The Finance Ministry said on Wednesday that it has released Rs 18,351 crore to 18 states for issuing grants to rural local bodies. The ministry said in a statement that the amount is the second installment of the original grant released in the financial year 2020-21.
According to the statement, the Department of Expenditure under the Ministry of Finance has released Rs 12,351.5 crore to 18 states for grant to rural local bodies (RLB). This grant to RLB has been released as per the recommendations of the 15th Finance Commission for the construction of community property and improving the financial condition of rural local bodies. The 15th Finance Commission has recommended two types of grants – basic and conditional – for the RLB. The basic grant can be used by local bodies for a particular local need. Conditional grants can be used for some basic services, such as toilets or water supplies. The ministry said that the said grants are in addition to the centrally sponsored schemes such as funds released by the Center and the state for Swachh Bharat and the Jal Jeevan Mission, to provide additional funds to the RLB.