As per 15th FC recommendations, Rs 1.42 Lakh Cr. tied grant to Panchayats for water & sanitation during 2021-26

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New Delhi : The Rs. 1,42,084 Crore tied grant to rural local bodies (RLBs)/ panchayats for water and sanitation for the five years 2021–22 to 2025–26, which has been recommended by the 15^th Finance Commission, will have a huge impact on ensuring these services in villages and thus on public health and quality of life in rural areas.

The 15^th Finance Commission tied grants will ensure more funds to Gram Panchayats to make their water supply and sanitation-related plans implemented and Gram Panchayats can function as local ‘public utilities’ with a focus on ‘service delivery. This is a big step towards strengthening the local self-government in line with the 73^rd Amendment to the Constitution of India, according to a PIB release.

The Department of Expenditure, Ministry of Finance, Government of India, has issued the Guidelines for release and utilisation of grants recommended by the 15^th Finance Commission for RLBs/ PRIs during the period 2021–22 to 2025–26. The Dept. of Drinking Water & Sanitation (DDWS), Ministry of Jal Shakti, Govt of India, will act as the nodal Department for determining the eligibility of the rural local bodies for the ‘15^th FC tied grant for water and  sanitation’ and recommend release of tied grant for water and sanitation to the Dept. of Expenditure, Ministry of Finance, for all States.

Department of Drinking Water and Sanitation has recommended for release of 1^st installment of tied grant to 25 States for water & sanitation activities and  onward transfer to RLBs/ PRIs. With Rs 50 thousand Crore budgetary support by Government of India, Rs 30 thousand Crore State’s share for Jal Jeevan Mission and this year allocation of Rs 28 thousand Crore under 15^th Tied grant for water and sanitation, more than Rs one lakh crore fund is available for making provision of piped water supply to the villages.

To help and enable RLBs/ panchayats to perform their functions as recommended by the 15^th Finance Commission, State’s Water & Sanitation/ Rural Water Supply/ Public Health Engineering Departments will provide technical assistance to these Panchayats/ RLBs. To simplify and help RLBs/ panchayats, the Department of Drinking Water & Sanitation, Ministry of Jal Shakti, has prepared a manual for utilisation of these funds and the same has been made available to all State Governments. They have been requested to get the manual translated into vernacular language and it should be made available to every village Panchayat.

In all, the 15^th Finance Commission recommended Rs 2,36,805 Crore to RLBs/ PRIs for the period 2021-22 to 2025-26. It also identified ‘water supply and sanitation’ as national priority areas, which determines the quality of life of people living in rural areas. It has recommended 60% of the allocation to RLBs/ Panchayats i.e. Rs. 1,42, 084 Crore as a tied grant to be utilised for a.) supply of drinking water, rainwater harvesting and water recycling; and b.) sanitation and  maintenance of open-defecation free (ODF) status.

Year-wise allocation of tied grant for water supply & sanitation services are as under:

(Amount in Rs. Crore)