Lok Sabha Question No. 58 (STARRED), answered on 2016-04-27
Subject: Financial Assistance to Urban Local Bodies
Ministry: URBAN DEVELOPMENT
Asked by: RITA TARAI

## GOVERNMENT OF INDIA

## MINISTRY OF URBAN DEVELOPOMENT

## LOK SABHA

## STARRED QUESTION NO. 58 TO BE ANSWERED ON APRIL 27, 2016

## FINANCIAL ASSISTANCE TO URBAN LOCAL BODIES

- *No. 58                 SHRIMATI RITA TARAI:

Will the MINISTER OF URBAN DEVELOPMENT be pleased to state:-

- (a) the  financial  assistance  provided  to  the  Urban  Local  Bodies (ULBs)  under  various  central  programmes/schemes  during  the last three years, programme/schemes and year-wise
- (b) whether Municipal Corporations and Municipal Councils in various States are facing financial crunch and if so, the details thereof, State-wise;
- (c) whether  the  Government  has  provided  or  proposes  to  provide additional funds to Municipal Corporations and Municipal Councils and if so, the details thereof; and
- (d) the details of urban development works likely to be undertaken by  the  said  funds  and  the  details  of  guidelines  issued  in  this regard?

## ANSWER THE MINISTER OF URBAN DEVELOPMENT (SHRI M. VENKAIAH NAIDU)

- (a) to (d): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION NO.58 FOR 27.4.2016 REGARDING FINANCIAL ASSISTANCE TO URBAN LOCAL BODIES

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- (a): Financial assistance under various ongoing schemes/programmes  is  released  to  State  Governments  and  not  to ULBs directly. Details are given at Annexure.
- (b): Rapid urbanisation has generated stress on infrastructure and other resources in our cities. Most ULBs in our country have financial limitations due to limited revenue base and sources. Urban Development is a State subject and the details rest with respective States/ULBs.
- (c): In addition to the funds under the various schemes  / programmes of the Ministry, Rs.17,061 crores meant for ULBs were released by the Ministry of Finance as per the recommendations of the  13 th &  14 th   Finance  Commissions  during  the  period  2013-2016. The  14 th   Finance  Commission  (FFC)  has  recommended  grant  of  Rs. 87,144 crores for ULBs for the period 2015-2020.
- (d): The additional funds which the 14 th  Finance Commission has recommended  for  devolution  to  the  ULBs  mandate  that the  urban local bodies should be required to spend the grants only on the basic services  within  the  functions  assigned  to  them  under  relevant legislations. The guidelines issued by the Ministry of Finance reiterate  the  recommendation  of  the  FFC  and  provide  details  for modalities for release and monitoring of the grants.

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## DETAILS OF FINANCIAL ASSISTANCE RELEASED UNDER ONGOING SCHEMES AND PROGRAMMES

(Rs. in crores)

| S.NO.   | Scheme / Programme                                                    | Year    | Year    | Year    | Total   |
|---------|-----------------------------------------------------------------------|---------|---------|---------|---------|
|         |                                                                       | 2013-14 | 2014-15 | 2015-16 |         |
| 1.      | SWACHH BHARAT MISSION                                                 | NIL     | 859.48  | 1075.94 | 1939    |
| 2.      | ATAL MISSION FOR REJUVENATION AND URBAN TRANSFORMATION (AMRUT) / NURM | NIL     | NIL     | 1979    | 1979    |
| 3.      | SMART CITIES                                                          | NIL     | NIL     | 1469    | 1469    |
| 4.      | NATIONAL HERITAGE CITY DEVELOPMENT AND AUGMENTATION YOJANA (HRIDAY)   | NIL     | NIL     | NIL     | NIL     |
| 5.      | URBAN TRANSPORT PLANNING & CAPACITY BUILDING SCHEME                   | 0.14    | 10.53   | 1.89    | 12.56   |
| 6.      | BUS FINANCE PROJECTS AND ANCILLARY INFRASTRUCTURE UNDER NURM          |         |         |         | 1152*   |
| 7.      | FINANCE COMMISSION GRANTS FOR ULBS                                    | 3949    | 6188    | 6924    | 17061   |

*Total for period of 2013-15 to 2015-16

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