FinMin releases Rs 15,187 cr to states as rural local bodies grant

The finance ministry on Wednesday released Rs 15,187 crore to 28 states as grants to rural local bodies to help them restart economic activity.

"Based on the recommendations of the 15th Finance Commission, @FinMinIndia today (Wednesday) released Rs 15,187.50 crore to 28 states as the 1st instalment of Rural Local Bodies Basic (Untied) Grants for 2020-21," the Office of Finance Minister Nirmala Sitharaman tweeted.

This amount would enable the rural local bodies to fight the coronavirus pandemic and restart economic activities, it added.


"The states (state finance department) shall transfer grants-in-aid within 10 working days of receipt from the Union government. Any delay beyond 10 working days will require state governments to release the same with interest," the Department of Expenditure under the finance ministry said.

The basic grants can be used by the local bodies for location-specific felt needs, except for salary or other establishment expenditure, the department added.