Agartala, Tripura government thanked Prime Minister Narendra Modi for releasing Rs 21 Crore to the state as the first installment of tied grants for the year 2021-22 to urban local bodies along with 10 other states.
Deputy Chief Minister holding the charge of finance Jishnu Dev Varma said that the Department of Expenditure of Ministry of Finance yesterday released an amount of Rs 2427 Cr to 11 States including Tripura. The grants have been provided for the Non-Million Plus cities including Cantonment Boards.
He pointed out that the 15th Finance Commission in its report for the period from 2021-22 to 2025-26 has divided the Urban Local Bodies into two categories – Million-Plus urban agglomerations/cities and all other cities and towns with less than one million population (Non-Million Plus cities). And, for the second category, it has recommended separate grants.
For Non-Million Plus cities finance commission has recommended 40% is the basic grant and the remaining 60% is as a tied grant. Basic grants are mandated to utilise for location-specific needs except for payment of salary and incurring other establishment expenditure, Dev Varma said.
The fund was released for supporting and strengthening the delivery of basic services out of which 50% is earmarked for Sanitation Solid Waste Management and attainment of star ratings as developed by the Ministry of Housing & Urban Affairs and the remaining 50% is tied to drinking water, rainwater harvesting and water recycling.
The minister explained that the tied grants are meant to ensure the availability of additional funds to urban local bodies over and above the funds allocated by the Centre and the State for sanitation and drinking water under various Centrally Sponsored Schemes and provide quality services to citizens.