NEW DELHI: The finance ministry on Wednesday released Rs 15,187 crore to 28 states as grants to rural local bodies in an effort to help them restart economic activity amidst the Covid-19 pandemic.
“Based on the recommendations of the 15th Finance Commission, @FinMinIndia today (Wednesday) released Rs 15,187.50 crore to 28 states as the 1st instalment of Rural Local Bodies Basic (Untied) Grants for 2020-21,” the Office of Finance Minister Nirmala Sitharaman tweeted.
According to the Finance Ministry, state governments have to transfer this amount within 10 working days.“The states (state finance department) shall transfer grants-in-aid within 10 working days of receipt from the Union government. Any delay beyond 10 working days will require state governments to release the same with interest,” the Department of Expenditure under the Union Ministry of Finance said.
The basic grants can be used by the local bodies for location-specific felt needs, except for salary or other establishment expenditure, the department added.
Meanwhile, the 15th Finance Commission on Wednesday also held a meeting with the Union Minister and officials of Jal Shakti Ministry on grants to rural local bodies for provision of drinking water and sanitation. The Commission raised specific concerns of about 2.5 lakh Panchayati Raj Institutions involved in drinking water supply and sanitation.