The State received ₹1,385 crore grant from the Central government towards grant to the rural local bodies (RLBs).
The amount forms part of the ₹12,351.5 crore released to 18 States as the second instalment of basic grants released in the current financial year. Basic grants, released in line with the 15th Finance Commission recommendations, are untied and they could be used by the local bodies for location-specific needs except for salaries or other establishment expenditure.
The grants were meant to ensure additional funds to RLBs over and above the funds allocated by the Centre and State for sanitation and drinking water under the Centrally sponsored schemes like Swachh Bharat and Jal Jeevan Mission. The Centre released the grants to the State which provided utilisation certificate for the first instalment and based on the recommendations of the Ministry of Panchayat Raj.
The grants had been released with a condition that the States should transfer these funds to the RLBs within 10 working days of receipt from the Union government. Any delay beyond 10 working days would mandate the State government to release the grants with interest, according to a press release.
