Centre releases about Rs 8,923 crore to states for providing grants to Rural Local Bodies

Ravi S Singh
Tribune News Service
New Delhi, May 10

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The Centre has released an amount of about Rs 8,923 crore to 25 states for providing grants to the Rural Local Bodies (RLBs) which may be used, among others, to combat the COVID-19 pandemic.

The grants are meant for all the three tiers of Panchayati Raj Institutions – village, block and district.

The amount released is the first instalment of the ‘Untied Grants’ for the year 2021-22.

“It may be utilised by the RLBs, among other things, for various prevention and mitigation measures needed to combat the COVID-19 pandemic,” the government said.

As per the recommendations of the 15th Finance Commission, the first instalment of untied grants was to be released to the states in the month of June 2021.

However, in view of the ongoing Covid pandemic situation and at the recommendation of the Ministry of Panchayati Raj, the Centre has decided to release the grant in advance of the normal schedule.

Moreover, the 15th Finance Commission had imposed certain conditions for release of untied grants.

The conditions include online availability of accounts of a certain percentage of RLBs in the public domain.

“But taking into consideration the prevailing circumstances, this condition has been waived for release of the first instalment of untied grants.”

The grants released to the states for 2021-22 include Rs 205 crore to Punjab, Rs 187 crore to Haryana, Rs 63 crore to Himachal Pradesh and Rs 85 crore to Uttarakhand.