Grant of Rs 1,764 crore released to four states for urban local bodies

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Grant of Rs 1,764 crore

The Department of Expenditure, Ministry of Finance has released an amount of Rs 1,764 crore to 4 states on 19 October 2022 for providing grants to Urban Local Bodies.

Important facts

  • The states to which the grant was released include Andhra Pradesh (Rs 136 crore), Chhattisgarh (Rs 109 crore), Maharashtra (Rs 799 crore) and Uttar Pradesh (Rs 720 crore).

  • In Uttar Pradesh, this amount has been given for Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut and Varanasi.

  • Whereas, Vijayawada and Visakhapatnam in Andhra Pradesh, Durg, Bhilainagar and Raipur in Chhattisgarh and Aurangabad, Greater Mumbai, Nagpur, Nashik, Pune and Vasai-Virar cities in Maharashtra will spend this amount.

  • A total grant of Rs 4,761.8 crore has been released to urban local bodies in the year 2022-23 so far.

Two categories of Urban Local Bodies

  • The 15th Finance Commission in its report for the period 2021-22 to 2025-26 has divided the urban local bodies into two categories -

  1. Urban agglomeration/cities with population Million-Plus (except Delhi and Srinagar)

  2. All other cities and towns with less than one million population (Non-Million Plus cities).

  • The commission had recommended a separate grant for them.

  • Of the total grants recommended by the Commission for over one million cities/urban clusters (MPCs/UAs), more than 2/3 are recommended for the solid waste management component and the remaining 1/3 for ambient air quality.

Sanjay Malhotra, Secretary, Department of Financial Services, will take over as the new Revenue Secretary on November 30 2022, currently Tarun Bajaj is the Revenue Secretary.

Secretary of Finance - Benjamin E. Diokno 

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