Grant of ₹ 1154.90 crore released to States for Urban Local Bodies

Total grant of ₹ 9,172.63 crore released to Urban Local bodies so far in 2021-22

The Department of Expenditure, Ministry of Finance today released an amount of ₹ 1154.90 crore to 4 States for providing grants to Urban Local Bodies.  The States to which grants were released on Monday are Andhra Pradesh (₹ 225.60 crore), Bihar (₹ 769 crore), Gujarat (₹ 165.30 crore) and Sikkim (₹ 5 crore).  The grants released are meant for Non-Million Plus cities (NMPCs) including Cantonment Boards.  

The 15^th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the Urban Local Bodies into two categories: (a) Million-Plus urban agglomerations/cities (excluding Delhi and Srinagar), and (b) all other cities and towns with less than one million population (Non-Million Plus cities).  The 15^th FC has recommended separate grants for them. Out of the total grants recommended by the Commission for Non-Million Plus cities, 40% is basic (untied) grant and the remaining 60% is tied grant.  Basic grants (untied) are 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 the total tied grant, 50% is earmarked 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 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.  State wise amount of urban local bodies grant released to states in the financial year 2021-22 so far are as under:

                                                                                                                                    Rs in crore

S.No.	State	Amount of ULB grant released in 2021-22
1	Andhra Pradesh	873.00
2	Arunachal Pradesh	0.00
3	Assam	0.00
4	Bihar	759.00
5	Chhattisgarh	369.90
6	Goa	13.50
7	Gujarat	660.00
8	Haryana	193.50
9	Himachal Pradesh	98.55
10	Jharkhand	187.00
11	Karnataka	375.00
12	Kerala	168.00
13	Madhya Pradesh	499.00
14	Maharashtra	461.00
15	Manipur	0.00
16	Meghalaya	0.00
17	Mizoram	17.00
18	Nagaland	0.00
19	Odisha	411.00
20	Punjab	185.00
21	Rajasthan	490.50
22	Sikkim	10.00
23	Tamil Nadu	741.75
24	Telangana	209.43
25	Tripura	58.00
26	Uttar Pradesh	1592.00
27	Uttarakhand	104.50
28	West Bengal	696.00
	Total	9172.63

 

Urban local body grants released to states for Non Million Plus cities, with distinct untied and tied funding for services. The Department released grants to States for Urban Local Bodies in Non Million Plus cities, with funding structured per the Finance Commission's recommendations: 40% as basic (untied) grant for location specific needs (excluding salaries and establishment costs) and 60% as tied grant to support service delivery. The tied portion is split equally between sanitation and solid waste management (including star rating attainment) and drinking water, rainwater harvesting and recycling, intended to supplement existing central and state schemes.