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Centre has released over 2,221 crore rupees to Bihar, Karnataka, and West Bengal for providing grants to the Rural Local Bodies. Over 1,112 crore rupees have been released to Bihar, over 473 crore to Karnataka and over 634 crore rupees to West Bengal. This Grant-in-aid is the second installment of tied grants to the State of Bihar and untied grant to the States of Karnataka and West Bengal of the year 2021-22.

According to 15th Finance Commission recommendations,  tied grants are released to Rural Local Bodies on the recommendations of the Department of Drinking Water and Sanitation for making improvements on sanitation and maintenance of open-defecation free status and supply of drinking water, rain water harvesting and water recycling. Untied grants are released on the recommendations of the Ministry of Panchayati Raj.

The States are required to transfer the grants to the local bodies within 10 working days of receipt from the Central  Government.  So far, Centre has released over 31,765 crore rupees  to Rural Local bodies  in the year 2021-22.

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