The Central Government has sanctioned Rs. 73771.80 lakh as basic grants for rural local bodies for the Andhra Pradesh government under Fourteenth Finance Commission.
The Centre also advised the state government to ensure that grants are distributed as per the approved formula recommended in the latest State Finance Commission (SFC) report.
The state government has also been directed to transfer the amount to the local bodies within fifteen days of receipt from the Central government.
In case of delay in transferring the amount, the Andhra Pradesh government will have to release the instalment with interest at bank rate of Reserve bank of India (RBI), for number of days of delay.
The Centre also directed that the distribution and utilization of the amount should be done in consonance with the Local Body Guidelines.