The Finance Ministry has released an amount of 4 thousand 608 crore rupees to the States for providing grant-in-aid to the local bodies. The grants are both for the Rural Local Bodies and Urban Local Bodies. The grants have been released as per the recommendations of the 15th Finance Commission.
In the last financial year, Centre released a sum of 87 thousand 460 crore rupees to 28 States as local body grants. Out of the total amount 60 thousand 750 crore rupees have been released for Rural Local Bodies while the remaining 26 thousand 710 crore rupees have been released for Urban Local Bodies.
The grants to the Rural local bodies will be partly utilised for sanitation and maintenance of open-defecation free status and supply of drinking water, rain water harvesting and water recycling. In the Urban areas, the fund will also cater to the needs of improvement in air quality, solid waste management and sanitation.