The Centre has Released a Grant-in-Aid of Rs. 13,385.70 Crore to Rural Local Bodies.
The most cash has been given to Uttar Pradesh (₹2162.4 crores), Maharashtra (₹1292.1 crores), Bihar (₹1112.7 crores), and Madhya Pradesh (₹883.2 crores), according to the finance ministry’s statement centre has released.
The Union finance ministry on Tuesday claimed that it has allocated a sum of Rs 13,385.70 crore for rural local bodies through grants. The states have received amounts ranging from Rs 100 million to Rs 2,000 crore each, according to the release. “This is the first tranche of the tied grants for 2021-22, and they have been released in accordance with the recommendations of India’s 15th Finance Commission,” according to the government.
The Centre has given ₹25,129.98 crores in grants for rural local bodies this year, according to the finance ministry. The objective of tied grants is to improve two vital services: sanitation and maintenance of open-defecation free (ODF) status, as well as water supply, rainwater harvesting, and water recycling, With the new tranche, the centre has released a total of ₹25,129.98 crores in funding for rural local bodies this year, according to the finance ministry. The government stated that tied grants are used to improve two essential services: sanitation and maintenance of ODF status, as well as water supply, rainwater harvesting.
“Out of the total Grant-in-aid allocated for Panchayati Raj institutions, 60 percent is ‘tied grant,’ according to the ministry. It added that the remaining amount may be spent as needed. However, the government stated that the payment of salaries should not be used with the remaining 40 percent of the money.
Conclusion:
On Monday, the Department of Expenditure, Ministry of Finance gave Rs. 13,385.70 crore to 25 states for rural local bodies’ subsidies. This Grant-in-Aid is the first installment in a series of Tied grants that will be paid out over the course of 2021-22. According to the 15th Finance Commission’s recommendations, centre has released in accordance with the need.
