This amount is the second instalment of basic grants released in the financial year 2020-21, the ministry said in a statement.
“The Department of Expenditure, Ministry of Finance has released an amount of Rs 12,351.5 crore to 18 States for providing grants to the Rural Local Bodies (RLBs),” it said.
The grants to RLBs are released as per the recommendations of the 15thFinance Commission to create community assets and improve the financial viability of the rural local bodies.
The 15thFinance Commission has recommended two types of grants basic and tied -to the RLBs.Basic grants are untied and can be used by the local bodies for location-specific felt needs except for salary or other establishment expenditure.
The tied grants can be used for the basic services of (a) sanitation and maintenance of open defecation free (ODF) status and (b) supply of drinking water, rainwater harvesting and water recycling.
“The grants are meant to ensure additional funds to RLBs over and above