Central Govt releases Rs 2221 cr Karnataka and 2 other states for rural local bodies

The Centre government has released over Rs 2,221 crore to Bihar, Karnataka, and West Bengal for providing grants to the rural local bodies. The government has released Rs 1,112.7 crore to Bihar, Rs 473.9 crore to Karnataka, and Rs 634.6 crore to West Bengal, according to data released by the Department of Expenditure, Ministry of Finance. It is the second instalment of grants to Bihar, Karnataka, and West Bengal of the year 2021-22, according to tot the Union Finance Ministry.

The grants for the rural local bodies are meant to ensure additional funds to rural local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under the Centrally Sponsored Schemes. The 15th Finance Commission recommended grants to be released to rural local bodies (RLBs) on the recommendations of the Department of Drinking Water & 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 the rural local bodies on the recommendations of the Ministry of Panchayati Raj after satisfying the conditions stipulated by the 15th Finance Commission. Of the total grant-in-aid earmarked for Panchayati Raj institutions, 60% is earmarked for national priorities like drinking water supply, rainwater harvesting, and sanitation (referred to as tied grants), while 40% is untied and is to be utilised at the discretion of the Panchayati Raj institutions for location-specific felt needs.

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To be eligible for grants during the years 2021-22 and 2022-23, the rural local bodies have to fulfill certain conditions. These conditions have been stipulated to enhance transparency, regular conduct of elections to the local bodies, and preparation of annual development plans by the local bodies. To receive both tied and untied grants, it is mandatory to prepare and make available online, in the public domain by at least 25% of the local bodies, both provisional accounts of the previous year and the audited accounts of the year before the previous year.