The 15th Finance Commission (FC) has recommended a total of Rs. 2,36,805 Crore for duly constituted Rural Local Bodies (RLBs) in 28 States for the period 2021-22 to 2025-26. The commission has recommended a total of Rs. 1,42,083 Crore as tied grant for the period 2021-22 to 2025-26, for maintenance of ODF status, supply of drinking water, rainwater harvesting and water recycling. For FY 2020-21, 15th FC had recommended Rs. 30,375 Crore as Tied Grant to RLBs of 28 States and for FY 2021-22, Rs. 26,941 Crore was recommended.
During 2021-22 out of total Rs. 26,941 Crore, Rs. 21,741.03 Crore has been released as tied grants till 31st March 2022, out of which Rs. 13,429.70 Crore has been released as 1st installment to 27 States and Rs. 8,311.33 Crore as 2nd installment to 13 States.
Out of the total grant earmarked for Panchayati Raj institutions, 60 percent is earmarked for drinking water & sanitation sector as tied grant and 40 percent as untied grant and is to be utilized at the discretion of the Panchayati Raj institutions for improving basic services in the panchayats.