Centre releases grant-in-aid of Rs 581.70 crore to Andhra Pradesh

New Delhi: The Department of Expenditure, Ministry of Finance, has on Monday released an amount of Rs 13,385.70 crore to 25 States for providing grants to the rural local bodies.

Out of this, Andhra Pradesh got Rs 581.70 crore and Telangana, Rs 409.50 crore. This takes the total release so far this year (2021-22) to AP to Rs 969.50 crore and to Telangana, Rs 682.50 crore. The States are asked to transfer the grants to the rural local bodies within 10 working days of their receipt from the Union government. Any delay beyond 10 working days requires the State governments to release the grants with interest. This rider has become necessary as several governments, AP and Telangana more so, are diverting the funds to their welfare schemes.

This Grant-in-aid is the 1st installment of Tied Grants of the year 2021-22. The grants have been released as per the recommendations of the 15th Finance Commission.

Tied grants are released to the Rural Local Bodies (RLBs) for improving two critical services - sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rain water harvesting and water recycling.

Out of the total Grant-in-aid allocated for Panchayat Raj institutions, 60 per cent is 'Tied Grant'. It's earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation. Remaining 40 per cent is 'Untied Grant' and is to be utilised at the discretion of the Panchayat Raj institutions for location specific needs, except for payment of salaries, a government press release said.

Tied grants are meant to ensure availability of additional funds to the 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.

This Grant-in-aid is the 1st installment of Tied Grants of the year 2021-22. The grants have been released as per the recommendations of the 15th Finance Commission.