Guidelines for release & utilization of grants recommended by 15th FC for RLBs, PRIs

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Guidelines for release & utilization of grants recommended by 15th FC for RLBs, PRIs

Guidelines for release & utilization of grants recommended by 15th FC for RLBs, PRIs

Recently, the 15th Finance Commission recommended conditional grants for clean water and sanitation to Panchayats during the financial years 2021-22 to 2025-26.

The 15th Finance Commission has recommended a total of Rs 2, 36,805 crore for Rural Local Bodies (RLBS) and Panchayats in 28 states. It also includes the Fifth and Sixth Schedule areas and excluded areas.

Of the total earmarked grant, 60 per cent (Rs 1.42 lakh crore) has been earmarked as conditional grant, while 40 per cent (Rs 94,721 crore) is unconditional (i.e., Panchayat can use it at its discretion to improve basic services).

The conditional grant will be used for:

  • Supply and sanitation of drinking water, rainwater harvesting and water recycling and maintaining ODD status (management and treatment of domestic waste, including human excreta and silt).
  • The Department of Drinking Water and Sanitation, under the Ministry of Jal Shakti, will be the nodal department for determining the eligibility of rural local bodies for conditional grants of the 15th Finance Commission.
  • It will recommend the release of conditional grants to the Department of Expenditure, Ministry of Finance.

Importance of grants related to 15th Finance Commission: It will be immensely beneficial in reduction of water borne diseases and improvement in health, reduction in dropout rate, avoidance of hard labor etc.

About Finance Commission

  • According to Article 280 of the Constitution, the President constitutes a Finance Commission every 5 years. It recommends the distribution of tax revenue between the Union and the States and the various States.
  • The 15th Finance Commission has been mandated to recommend measures necessary to augment the Consolidated Fund of the States for supplementary resources for Panchayats and Municipalities during the year 2020-2025.

Source – PIB

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