Bihar govt to give matching grants to local bodies

Patna, Nov 16 (UNI) The Bihar government has decided to give matching grants to panchayats and local bodies, equivalent to their internal resources to meet their establishment expenditure.

Deputy Chief Minister of Bihar Sushil Kumar Modi said here today that the decision had been taken after being recommended by the state finance commission.

He said the grants would be three per cent of the tax revenue of the state government which whould be reduced at the rate of 20 per cent per year and would automatically end after five years.

'' This step would prove a landmark in giving ample time to local bodies for attaining self-sufficiency,'' he said adding the state government would also implement the recommendations of the 12th finance commission.

The state government would release funds to panchayats and local bodies for preparing data base and other infrastructural facilities, he added.

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