New Delhi: The Department of Expenditure under the Ministry of Finance released Friday Rs 411 crore to Odisha for providing grants to urban local bodies (ULBs). Odisha is among the six states to which the Centre released an amount of Rs 1,348.10 crore for the purpose.
The other states where funds were released are Jharkhand (Rs 112.20 crore), Karnataka (Rs 375 crore), Kerala (Rs 168 crore), Tamil Nadu (Rs 267.90 crore), and Tripura (Rs 14 crore).
With the present amount the Centre has released Rs 822 crore to Odisha in the current financial year. The grants released were meant for non-million plus cities, including Cantonment Boards.
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In its report for 2021-22 to 2025-26, the 15th Finance Commission has divided the ULBs into two categories—million-plus urban agglomerations/cities (excluding Delhi and Srinagar) and all other cities and towns with less than one million population (non-million plus cities). It has recommended separate grants for them.
Out of the total grants recommended by the commission for non-million plus cities, 40 per cent is basic (untied) grant and the remaining 60 per cent is tied grant.
“Basic grants (untied) are utilised for location specific felt needs, except for payment of salary and incurring other establishment expenditure. Tied grants, on the other hand, are released for supporting and strengthening the delivery of basic services. Out of the total tied grant, 50 per cent is earmarked for ‘sanitation solid waste management and the remaining 50 per cent for ‘drinking water, rainwater harvesting and water recycling’, said an official.
