Tatsat Chronicle Magazine

Grant-in-Aid of ₹2221.2 Cr for Bihar, Karnataka, WB Rural Local Bodies Released

A total of ₹31,765.2715 crore has been released by the government of India to the rural local bodies in 2021-22
March 14, 2022
Rural local bodies

The Department of Expenditure, Ministry of Finance, on Friday released an amount of ₹2,221.2 crore to Bihar, Karnataka and West Bengal for providing grants to rural local bodies (RLBs).

Bihar has received ₹1,112.7 crore, Karnataka has received ₹473.9 crore and West Bengal has received ₹634.6 crore. This grant-in-aid was the second instalment of tied grant to the state of Bihar and untied grant to the states of Karnataka and West Bengal for the year 2021-22.

The 15th Finance Commission (FC-XV) recommended tied grants are released to RLBs on the recommendations of the Department of Drinking Water and Sanitation for making improvements on two critical services, namely (a) sanitation and maintenance of open-defecation free (ODF) status and (b) supply of drinking water, rainwater harvesting and water recycling. Untied grants are released to RLBs on the recommendations of the Ministry of Panchayati Raj after satisfying the conditions stipulated by the FC-XV.

Of the total grant-in-aid earmarked for Panchayati Raj Institutions (PRIs), 60 per cent is earmarked for national priorities such as drinking water supply, rainwater harvesting and sanitation (referred to as tied grants), while 40 per cent grant-in-aid is untied and to be used at the discretion of the PRIs to meet location-specific needs.

Local body grants are meant to ensure additional funds to rural local bodies in addition to the funds allocated by the Centre and the state for sanitation and drinking water under centrally sponsored schemes.

To be eligible for grants during 2021-22 and 2022-23, RLBs have to fulfil certain conditions. These conditions have been set only to increase transparency, conduct regular elections to local bodies and prepare annual development plans by local bodies.