Ministry of Finance releases Rs.15,187 crore as grants-in-aid to Rural Local Bodies

Ministry of Finance has released an amount of over 15 thousand and 187 crore rupees as grants-in-aid to 2.63 lakh Rural Local Bodies (RLBs) spread in 28 States of the country. The amount was released upon the recommendation of the Ministry of Panchayati Raj, Department of Drinking Water and Sanitation and Jal Shakti Ministry. 

This grants-in-aid forms part of the Tied Grant as recommended by the 15th  Finance Commission for the Financial Year 2020-21. It will be used by RLBs to facilitate taking up of various developmental work concerning supply of drinking water, rain water harvesting, water recycling, sanitation and maintenance of Open Defecation Free status which are national



priorities.

Giving this information, Union Minister of Panchayati Raj, Narendra Singh Tomar said that the release of this fund to the Rural Local Bodies signifies the most appropriate timing when they are fighting the challenges posed by the COVID-19 pandemic situation. He said, availability of the fund with the RLBs will boost their effectiveness in delivery of basic services to the rural citizens. 

Mr Tomar said it would also empower them in providing gainful employment to migrant laborers who have returned to their native places owing to COVID-19 pandemic situation as well as in augmenting rural infrastructure in a constructive way.