“The Ministry of Finance’s Department of Expenditure issued a sum of Rs 13,385.70 crore to 25 States on Monday for giving funds to Rural Local Bodies,” the ministry said in a statement.

This is the first instalment of Tied grants for the fiscal year 2021-22. The grants were distributed in accordance with the 15th Finance Commission’s recommendations.

FSDC meeting on September 3; to assess the economy and financial industry.

Tied grants are intended to ensure that rural local governments have access to additional money beyond the monies granted by the Centre and states for sanitation and drinking water under Centrally Sponsored Schemes.

The states are obligated to deliver the grants to rural local governments within 10 working days, and the grants must be released with interest.