Lok Sabha Question No. 3038 (UNSTARRED), answered on 2015-12-17
Subject: Swachh Bharat Mission
Ministry: DRINKING WATER AND SANITATION
Asked by: PONNUSAMY VENUGOPAL

## Government of India

## Ministry of Drinking Water and Sanitation

## LOK SABHA UNSTARRED QUESTION NO. 3038 TO BE ANSWERED ON 17-12-2015

## Swachh Bharat Mission

## 3038. DR. P. VENUGOPAL:

Will the Minister of DRINKING WATER AND SANITATION be pleased to state :

(a)  whether  a  sub-group  has  been  set  up  to  finalize  the  financial  modalities  for  the  Swachh Bharat Mission (SBM) and if so, the terms of reference and constitution thereof;

(b) the time by which the said sub-group is likely to give its report;

- (c)  whether  the  sub-group  would  examine  the  financial  requirements  for  comprehensive implementation of the SBM and suggest measures for meeting budgetary needs; and

(d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF DRINKING WATER & SANITATION

## (SHRI RAM KRIPAL YADAV)

(a) A Sub-Group of Chief Ministers on Swachh Bharat Abhiyaan was constituted by NITI Aayog on 24.03.2015 as per decision taken at the first meeting of the Governing Council of the NITI Aayog  held  on  8 th February,  2015.  The  Sub-Group  consists  of  Chief  Ministers  of  Andhra Pradesh,  Bihar,  Delhi,  Haryana,  Karnataka,  Maharashtra,  Mizoram,  Sikkim,  Uttarakhand  and West Bengal as Members with Chief Minister of Andhra Pradesh as the Convener of the SubGroup and CEO, NITI Aayog as the coordinator of the Sub-Group. The Terms of Reference of the Sub-Group included the following:

- To  examine  financial  requirements  for  comprehensive  implementation  of  the  Swachh Bharat Mission and suggest measures for meeting budgetary needs;
- To recommend robust institutional mechanisms for effective implementation;
- To  recommend  measures  for  technological  support  for  different  components  of  SBM, including solid and liquid waste management in rural and urban areas;
- To examine models for private sector participation in the Swachh Bharat Mission and to suggest  ways  for  substantial  improvement  in  participation  of  private  sector  and  civil society organizations for effective implementation;
- To recommend ways to make the SBM sustainable; and
- Any other measures.

(b) The Sub-Group of Chief Ministers on Swachh Bharat Abhiyaan has submitted its report to Hon'ble Prime Minister on 14.10.2015.

(c)  and  (d)  The  Sub-Group  has  made  the  following  recommendations  regarding  meeting budgetary needs in this regard:-

## 1. Budgetary Support

- This is a national programme of paramount importance and to take it forward adequate availability of funds is required. Therefore, it is a joint responsibility of both Central and State Governments to carry forward this programme. In this scenario, it is recommended that the State Governments may share the financing provided by the Central Government for this programme.
- Since  the  construction  of  toilets  has  to  be  done  in  Mission  Mode,  higher  budgetary support may be provided by the Centre and States for the construction of toilets in the next three years to ensure that construction targets are achieved in a time bound manner.
- Additional resource mobilisation may be done by the State Governments to raise funds for the programme. Wherever feasible, funds from other Government programmes may be tied up for SBM.
2. Corporate Social Responsibility, External Sources and other contributions :Funds from the following sources may also be channelized for Swachh Bharat Mission:
- Funds from Corporate Social Responsibility for SBM.
- Contributions  to  the  Swachh  Bharat  Kosh  set  up  by  the  Government  of  India  from various sources.
- The State Governments may consider setting up a Swachh Bharat Kosh at the State Level on the lines of the Swachh Bharat Kosh constituted at the central level. Donations to this Kosh should also be eligible  for  all  tax  incentives  as  applicable  to  the  Swachh  Bharat Kosh set up by Government of India.
- Assistance (both technical and financial) obtained from multilateral and externally-aided sources.

## 3. Fourteenth Finance Commission

- The grants provided to the Local Bodies under the 14th Finance Commission are to be utilised over a range of services being provided by the GPs/ULBs to improve the status of basic  civic  services  including  water  supply,  sanitation  including  septage  management, sewerage and solid waste management, storm water drainage, maintenance of community assets,  maintenance  of  roads,  footpaths  and  street-lighting,  and  burial  and  cremation grounds. As Swachh Bharat Mission is the most important programme for the next four years, it is proposed that the first charge on the expenditure on 14th Finance Commission grants to Local Bodies shall be on the activities to be undertaken under Swachh Bharat Mission. The Government of India may advise the States accordingly.
- The Fourteenth Finance Commission (FFC) recommendations have not covered the local bodies in rural  areas  in  some  of  the  North  Eastern  States.  These  local  bodies  have  not received the grants under FFC as received by local bodies in other States of the country. Hence,  it  is  recommended  that  Government  of  India  may  consider  releasing  grants  to such States at the same level as provided to the local bodies in other States

## 4. Tax provisions

- Enabling provision to empower Central Government to impose Swachh Bharat Cess on all or certain taxable services at the rate of 2% on the value of such taxable services, as announced in the Union budget 2015-16 to generate additional resources for SBM.
- Long term tax-free Swachh Bharat Bonds may be issued by the Central Government to generate  additional  resources.  The  State  Governments  may  also  issue  Swachh  Bharat bonds. The Central Government may provide tax exemption on these bonds issued by the States.
- To generate additional resources for the programme the following cess may be levied:
- (i)  Swachh  Bharat  Cess  on  petrol,  diesel  and  telecom  services  may  be  levied  by  the Central Government.
- (ii)  Swachh  Bharat  cess  on  accumulated  waste  produced  by  mineral  waste  generation plants like coal, aluminium, and iron ore may be levied by the Central Government.

## 5. Financial Institutions

Sanitation  facility  is  now  a  part  of  priority  sector  lending.  Hence,  funds  from  financial institutions may be availed for this programme. It is recommended that the Swachh Bharat infrastructure may be included as a part of priority sector lending.