The grants for urban local bodies have been released as per the recommendations of the 15th Finance Commission.
The Finance Ministry has released Rs 686 crore to four states — Uttar Pradesh, Gujarat, Jharkhand and Mizoram — to provide grants to urban local bodies (ULBs).
The grants for urban local bodies have been released as per the recommendations of the 15th Finance Commission, aimed at improving basic civic services, including fulfilling location-specific felt needs. These grants are intended for smaller (non-million plus) cities, including cantonment Boards.
“The Department of Expenditure has released an amount of Rs 685.80 crore to 4 states for providing grants to the Urban Local Bodies (ULBs). Out of this, an amount of Rs 494 crore has been released to Uttar Pradesh, Rs 110.20 crore to Gujarat, Rs 74.80 crore to Jharkhand and Rs 6.80 crore to Mizoram,” the Finance Ministry said in a statement.
The grants are meant to ensure the provision of additional funds to urban local bodies over and above the funds allocated by the Centre and state for sanitation and drinking water under the Centrally Sponsored Schemes.
The states are required to transfer the grants to the ULBs within 10 working days of receipt from the Union Government. Any delay beyond 10 working days requires the state governments to release the grants with interest, the statement said.