BENGALURU: The Centre has released the second instalment of Rs 800 crore to the state that is meant of Rural Local Bodies (RLBs). In the first installment for the financial year 2020-21, the state had received Rs 1,600 crore.
“Another Rs 800 crore is due,” said sources in the state government.Grants to RLBs are released as per the recommendations of the 15th Finance Commission to create community assets and improve the financial viability of local bodies. The Commission has recommended two types of grants to RLBs — basic and tied.
Local bodies can use basic grants for location-specific needs, except for salary or other establishment expenditure. Tied grants can be utilised for basic services such as sanitation and maintenance of open defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling, according to a statement issued by the Centre.
In the second instalment, the Department of Expenditure, Union Ministry of Finance, released Rs 12,351.50 crore to 18 states which had sent back reports (Utilisation Certificates) on using the first tranche of funds as per the recommendation of Union Ministry of Panchayat Raj.
This is over and above the funds allocated by the Centre and the State towards sanitation and drinking water projects under Centrally-sponsored schemes, like Swachh Bharat and Jal Jeevan Mission.
“The states are required to transfer grants to the RLBs within 10 working days of receipt from the Union government. Any delay beyond 10 working days requires the state governments to release the grants with interest,” the statement said.