New Delhi: The Finance ministry on Friday released an amount of Rs. 2,221.2 crore to Bihar, Karnataka and West Bengal for providing grants to the Rural Local Bodies. Rs. 1,112.7 crore has been released to Bihar, Rs. 473.9 crore to Karnataka and Rs. 634.6 crore to West Bengal.

This Grant-in-aid is the 2nd installment of Tied grants to the State of Bihar and Untied grant to the States of Karnataka and West Bengal of the year 2021-22.

Out of the total Grant-in-aid earmarked for Panchayati Raj institutions, 60 percent is earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation (referred as tied grants), while 40 percent is untied and is to be utilized at the discretion of the Panchayati Raj institutions for location specific felt needs.

The Local Body grants are meant to ensure additional funds to Rural local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under the Centrally Sponsored Schemes.

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