TS gets Rs. 209.43 cr, AP Rs. 873 cr for ULB development in FY2021-22

Tied grants are for the strengthening of basic services delivery, including sanitation, drinking water needs, and rainwater harvesting.

By Newsmeter Network  Published on  14 Feb 2022 2:17 PM GMT
TS gets Rs. 209.43 cr, AP Rs. 873 cr for ULB development in FY2021-22

In the financial year 2021-22, Telangana received Rs. 209.43 crores and Andhra Pradesh Rs. 873 crores for the development of Urban Local Bodies (ULBs). The department of expenditure, ministry of finance, has released a total of Rs. 9,172.63 crores so far to all states except Arunachal Pradesh, Assam, Manipur, Meghalaya, and Nagaland as grants for ULB development.

On 14 February, the Centre released grants to four states –Andhra Pradesh (Rs. 225.60 crores), Bihar (Rs. 769 crores), Gujarat (Rs. 165.30 crores), and Sikkim (Rs. 5 crores) – for Non-Million Plus Cities (NMPCs), including Cantonment Boards. NMPCs are towns and cities with less than one million population.

The 15th Finance Commission (from 2021-22 to 2025-26) has divided ULBs into two categories – Million-Plus agglomerations/cities (excluding Delhi and Srinagar) and NMPCs. Out of the total grants recommended for NMPCs, 40% is basic (united) grant and 60% is tied grant. Basic or united grants are utilised for location-specific needs, except for payment of salary and incurring other establishment expenditures. Tied grants are for the strengthening of basic services delivery, including sanitation, drinking water needs, and rainwater harvesting.

In FY 2021-22, Uttar Pradesh received the highest grant (Rs. 1,592 crores) followed by Andhra Pradesh (Rs. 873 crores) and Bihar (Rs. 759 crores).

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