The Department of Expenditure, Ministry of Finance has released an amount of Rs. 1348.10 crore to 6 States for providing grants to Urban Local Bodies. The States to which grants were released on Friday are Jharkhand (Rs. 112.20 crore), Karnataka (Rs. 375 crore), Kerala (Rs. 168 crore), Odisha (Rs.411 crore), Tamil Nadu (Rs.267.90 crore) and Tripura (Rs.14 crore). The grants released are meant for Non-Million Plus cities (NMPCs) including Cantonment Boards.
The 15th 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 15th 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.
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