THE Finance Ministry on Sunday said it has released Rs 8,923 crore to 25 States for providing grants to the rural local bodies for various prevention and mitigation measures needed to combat the COVID-19 pandemic. The Department of Expenditure, Ministry of Finance, on Sunday released an amount of Rs 8,923.8 crore to 25 States for providing grants to the rural local bodies (RLBs). The grants are meant for all the three tiers of Panchayati Raj Institutions – village, block and district, an official statement said.

 

It may be utilised by the RLBs, among other things, for various prevention and mitigation measures needed to combat the COVID-19 pandemic, and will augment their resources. As per the recommendations of the 15th Finance Commission, the 1st instalment of grants was to be released to the States in the month of June 2021. However, in view of the ongoing COVID-19 pandemic situation and at the recommendation of the Ministry of Panchayati Raj, the Ministry of Finance has decided to release the grant in advance of the normal schedule, the Ministry added. Moreover, the 15th Finance Commission had imposed certain conditions. The conditions include online availability of accounts of a certain percentage of rural local bodies in the public domain. But, this condition has been waived for release of the first instalment of untied grants.