Finance Ministry releases Rs. 62.50 Cr to Nagaland as ‘Rural Local Bodies Tied Grant’

Finance Ministry releases Rs. 62.50 cr to Nagaland as 'Rural Local Bodies Tied Grant'

Kohima, January 27 (NEx): The Department of Expenditure, Ministry of Finance, Government of India on Wednesday, released an amount of Rs.12,351.5 Crore to 18 States for providing grants to the Rural Local Bodies (RLBs). This is the second instalment amount of basic grants released in the financial year 2020-21, informed the Finance Ministry on Wednesday.

According to Ministry of Finance data, Rs. 62.50 crore was released to Nagaland State as second instalment of ‘Rural Local Bodies Tied Grant’ for 2020-21, as recommended by the 15th Finance Commission.

The basic grants can be used by the local bodies for the basic services of sanitations & maintenance of open defecation free status and supply of drinking water, rain water harvesting & water recycling.

The Finance Ministry notified that the grant has been released to 18 States who have provided the Utilisation Certificate for the first instalment and on the recommendation of the Ministry of Panchayati Raj.

The States are required to transfer the 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, it said.

Earlier, 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 on June, 2020. Subsequently, the first 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, said Finance Ministry on Wednesday.

Along with Nagaland, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal are the other states which received Rural Local Bodies Tied Grant.