Govt releases Rs 1154 cr grants to 4 states for Urban local bodies

On Monday, the central government issued Rs 1154.90 crore to four states comprising Bihar, Gujarat, Andhra Pradesh, and Sikkim for giving grants to Urban Local Bodies. The highest amount of Rs 769 crore is issued to Bihar. Andhra Pradesh has obtained Rs 225.60 crore, Gujarat has obtained Rs 165.30 crore, while Sikkim has obtained Rs 5 crore. The grants issued are meant for Non-Million Plus cities (NMPCs) comprising Cantonment Boards, as per the Ministry of Finance. The 15th Finance Commission, in its report for the period from 2021-22 to 2025-26, has separated the Urban Local Bodies into two categories: (a) Million-Plus urban. .agglomerations or cities (excluding Delhi and Srinagar), and (b) all other cities and towns with less than one million population (Non-Million Plus cities). The 15th Finance Commission has suggested separate grants for them. Out of the total grants suggested by the Commission for Non-Million Plus cities, 40% is the basic (untied) grant, and the remaining 60% is the tied grant. Basic grants (untied) are utilised for location-specific felt requirements, except for salary payment and incurring other establishment expenditures. On the other hand, tied grants for the Non-Million Plus cities are issued for helping and bolstering the delivery of basic services. Out of the total tied grant, 50% is allocated for Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs (MoH&UA). The remaining 50% is tied to ‘Drinking water, rainwater harvesting and water recycling. The tied grants are meant to guarantee the availability of additional funds to urban local bodies over and above the funds assigned by the Centre and the State for sanitation and drinking water under different Centrally Sponsored Schemes and render quality services to citizens. Image Source Also read: Govt disbursed Rs 41,415 cr interest subsidy under PMAY-U