Department of Expenditure, Ministry of Finance on Friday released an amount of 2,427 crore rupees to 11 states for the Urban Local Bodies. The amount released is the 1st installment of tied grants for the year 2021-22. These grants have been provided for the Non-Million Plus cities 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. These are Million-Plus urban agglomerations/cities and all other cities and towns with less than one million population.  Out of the total grants recommended by the Commission for Non-Million Plus cities, 40 percent is basic (untied) grant and the remaining 60 percent is as tied grant.  Basic grants (untied) can be 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 this, 50 percent is earmarked for ‘Sanitation Solid Waste Management and attainment of star ratings and the remaining 50 percent is tied to ‘Drinking water, rainwater harvesting and water recycling’.