Odisha gets Rs 1,693.50 crore fund from Union govt for Rural Local Bodies

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Odisha received a grant of Rs 1,693.50 crore from the center in the 2020-21 fiscal for Rural Local Bodies (RLBs) towards the second instalment of basic grants, Union Finance Ministry said in a statement.

The grants are meant to ensure additional funds to RLBs over and above the funds allocated by the Centre and the State for sanitation and drinking water under the Centrally Sponsored Schemes like Swachh Bharat and Jal Jeevan Mission.

The 15th Finance Commission has recommended two types of grants to the RLBs – basic and tied grants.

Basic grants are untied and can be used by the local bodies for location specific felt needs except for salary or other establishment expenditure.  The tied grants can be used for the basic services of sanitation and maintenance of Open Defecation Free (ODF) status, and supply of drinking water, rain water harvesting and water recycling.

The States are required to transfer the grants to the RLBs within 10 working days of receipt from the Union Government.  Any delay beyond 10 working days requires the State Governments to release the grants with interest.

Earlier, the first instalment of basic grants to RLBs were released to all the states in June 2020.

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