COVID-19 management: Centre releases Rs 8,923 cr to 25 states as grants for rural local bodies

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 Saturday 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 utilized 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 installment 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.