PANJIM: The Ministry of Finance has stated that Rs 5.40 crore has been released to Urban Local Bodies (ULBs) as grants for the financial year 2021-22.
In a statement, the Ministry of Finance explained that the grants for ULBs were released as per the recommendations of the 15th Finance Commission. They are aimed at improving basic civic services including fulfilling location specific felt needs.
Furthermore, these grants are divided, wherein 50 per cent is basic (untied) and the remaining 50 per cent is a tied grant.
Basic grants (untied) can be utilised for location specific felt needs except for salary or other establishment expenditure. The tied grants are to be utilised for drinking water (including rainwater harvesting and recycling) and solid waste management.
The grants are meant to ensure provision 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 the Centrally sponsored schemes.
The States are required to transfer the grants to the ULBs within 10 working days and if there is any delay, then the State governments have to release the grants with interest.
The Ministry of Finance has released a total of Rs 2,516.73 crore to support ULBs across the country in 2021-22.
