New Delhi: The Department of Expenditure, Ministry of Finance, has released an amount of Rs 2,221.2 crore to Bihar, Karnataka and West Bengal for providing grants to the Rural Local Bodies (RLBs). Rs 1,112.7 crore has been released to Bihar, Rs 473.9 crore to Karnataka and Rs 634.6 crore to West Bengal. This grant-in-aid is the second instalment of tied grants to Bihar and untied grant to Karnataka and West Bengal of 2021-22.

The 15th Finance Commission 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, sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rain water 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 15th Finance Commission.

Out of the total grant-in-aid earmarked for Panchayati Raj institutions, 60 per cent is earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation (referred as tied grants), while 40 per cent is untied and is to be utilized at the discretion of the Panchayati Raj institutions for location specific felt needs. The local body grants 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. /BI/