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Business Economy


Centre releases Rs 2,427 crore to 11 states for urban local bodies

The Centre on Friday released a grant of Rs 2,427 crore to 11 states for Urban Local Bodies (ULBs). With this, the total grant to ULBs now stand at Rs 4,943.73 crore in the financial year 2021-22.
"These grants have been provided for the Non-Million Plus cities (NMPCs) including Cantonment Boards," said Finance Ministry in a statement.
The 15th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the Urban Local Bodies into Million-Plus urban agglomerations/cities (excluding Delhi and Srinagar) and all other cities and towns with less than one million population (Non-Million Plus cities) and has recommended separate grants for them.

Out of the total grants recommended by the Commission for Non-Million Plus cities, 40 per cent is basic (untied) grant and the remaining 60 per cent is as tied grant. Basic grants (untied) can be utilised for location specific felt needs except for payment of salary and incurring other establishment expenditure.
On the other hand, tied grants for the Non-Million Plus cities are released for supporting and strengthening the delivery of basic services out of which 50 per cent is earmarked for ‘Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs (MOH&UA) and the remaining 50 per cent is tied to ‘Drinking water, rainwater harvesting and water recycling’.
"The tied grants are meant to ensure availability of additional funds to urban local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under various Centrally Sponsored Schemes and provide quality services to citizens," said the Finance Ministry.
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