Lok Sabha Question No. 2275 (UNSTARRED), answered on 2017-03-15
Subject: Financial Empowerment of Urban Bodies
Ministry: URBAN DEVELOPMENT
Asked by: R. GOPALAKRISHNAN, J.C. DIVAKAR REDDY

## MINISTRY OF URBAN DEVELOPMENT

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 2275 TO BE ANSWERED ON MARCH 15, 2017 FINANCIAL EMPOWERMENT OF URBAN BODIES

No. 2275.   SHRI R. GOPALAKRISHNAN:

SHRI J.C. DIVAKAR REDDY:

Will the Minister of URBAN DEVELOPMENT be pleased to state:-

- (a) whether the Government has taken any  steps/measures  for financially empowering the urban local bodies in the country and to hold them accountable;
- (b) if so, the details thereof;
- (c) whether  some  States  have  failed  to  introduce  basic  urban
- and municipal reforms; and
- (d) if  so,  the  details  of  such  States  and  UTs  and  the  funds granted for the purpose by the Government to each State during the last three years and the current year so far?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF URBAN DEVELOPMENT

## (RAO INDERJIT SINGH)

(a)&(b): Urban Development is a State subject and Urban Local  Bodies  (ULBs)  function  under  the  laws  and  rules  made  by State  Government  and  as  such,  providing  financial  autonomy  to the  municipalities  is  not  within  the  purview  of  this  Ministry. However,  in  order to  improve  the  governance  and  financial condition of ULBs, the Ministry has been advising and encouraging States to implement the 74th Constitutional Amendment Act (CAA) in letter and spirit so that there is proper devolution of powers visà-vis,  functions,  functionaries  and  funds.    Further,  emphasis  has been on implementation of urban sector reforms including property tax reforms, rationalization of stamp duty, implementation of double entry accounting systems, e- governance,  levy  of  reasonable  user  charges,  and  encouraging public private partnerships. Apart from this, the Ministry extends financial  assistance  for  urban  infrastructure,  governance,  reform implementation and capacity building programmes under various schemes  and  programmes  to  augment  the efforts of State Governments.

- (c) &(d): The Atal Mission for Rejuvenation and Urban Transformation  (AMRUT)  provides  for  grant  of  incentive  to  carry out mandated  reforms, 20 States/ UTs have crossed the benchmark score of 70% and awarded them the reform incentive in 2016-17. 16 States/ UTs have failed to achieve the benchmark, the list of such States/ UTs are as under:-

|   Sl. no. | Name of State/UT     |
|-----------|----------------------|
|         1 | A &N Islands         |
|         2 | Arunachal Pradesh    |
|         3 | Assam                |
|         4 | Dadra & Nagar Haveli |
|         5 | Daman & Diu          |
|         6 | Delhi                |
|         7 | Haryana              |
|         8 | Jammu & Kashmir      |
|         9 | Lakshadweep          |
|        10 | Manipur              |
|        11 | Meghalaya            |
|        12 | Nagaland             |
|        13 | Puducherry           |
|        14 | Punjab               |
|        15 | Sikkim               |
|        16 | Uttarakhand          |

The  Ministry  has  granted  an  amount  of  Rs.  123.38  crore under A&OE component of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The implementation of the specified reforms is an eligible activity under this component.