15th Finance Commission recommends Rs 1.56 lakh crore grant to urban local bodies

The 15th Finance Commission (FC) has recommended a grant of around Rs 1.56 lakh crore to urban local bodies. This is a huge increase from the previous allocation of around Rs 87,000 crore which was made by the 14th Finance Commission for ULBs for the five years from 2015-16 to 2019-20.

It has also imposed conditions on the municipalities for timely publishing of annual accounts and service-level benchmarks.

In terms of service-level benchmarks for SWM, the FC identified three key priorities:

  1. Stop dumping and providing collection and environmentally-sound disposal services to all citizens

2. Introduce alternative methods of waste management in order to reduce waste disposal requirements.

3. Closure and capping of existing dumpsites, in compliance with environmental regulations, 

Union Housing and Urban Affairs Secretary Durga Shanker Mishra has said Rs 12,139 crore has been set aside to improve ambient air quality, and Rs 26,057 crore for drinking water, sanitation, and solid waste management. He said urban local bodies will have to notify property tax in line with the state GDP to avail of the grant recommended by the 15th Finance Commission. These bodies will also have to make public their audited and unaudited annual accounts.

The Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations. The report of the 15th Finance Commission was tabled in Lok Sabha by Finance Minister Nirmala Sitharaman on February 1.

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