Government Grants Rs 12,351 Crore for Rural Bodies

Government Grants Rs 12,351 Crore for Rural Bodies

The Ministry of Finance has released Rs12,351 crore as the 2nd instalment of basic grants to the Rural Local Bodies (RLB).

The amount has been granted to 18 States for providing grants to the RLBs, as per the recommendations of the 15th Finance Commission to create community assets and improve financial viability of the RLBs.

The 15th Finance Commission has recommended two types of grants to the RLBs – basic and tied grants.

However, the first instalment of basic grants to RLBs and arrears of 14th Finance Commission amounting to Rs 18,199 crore were released to all the States in June, 2020.

Subsequently, the 1st instalment of tied grants amounting to Rs 15,187.50 crore was also released to all the States.   

So far, a total amount of Rs 45,738 crore of both basic and tied grants has been released by the Department of Expenditure to the States for RLBs.

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Knowledge Source:

IMF Forecasts Economic Growth at 11.5% for FY-22

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