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Centre for ULBs improving income, services for availing Performance Grant

 The Urban Local Bodies will henceforth not be eligible for Performance Grants from the Centre unless these bodies improve their income and services for the people.

The Ministry of Urban Development (MoUD) has recently asked the State Government to provide Performance Cards on ULBs for releasing the grant in favor of these Urban Institutions, with information on updated audit, improved financial health and stepped up service delivery to the citizens in the Urban Zones, said sources here.

Union Secretary Urban Development Ministry Rajiv Gauba has categorically told the State Government to ask the ULBs to self evaluate them and submit their claims for the performance grants within a stipulated time.

Such an instruction has raised concern among the ULBs as these are mostly dependent on the grants from the Ministry, said the sources. They said performance of the ULBs in State is not satisfactory as these needs much improvement in the income generation and service delivery fronts.

A senior official said performance grant is crucial for these institutions so as to improve their system by taking up reform measures and improve their financial health as well as service delivery system.

Gauba has said that Fourteenth Finance Commission (FFC) recommended grants worth Rs 87,143 crore for urban bodies in the country of which as much as 20 per cent is Performance Grant. This is a four-fold rise in grants over Thirteenth Finance Commission recommendations for ULBs.

Keeping the recommendations of the FFC in view, the Finance Ministry has mandated the MoUD to examine and recommend the claims for performance grants to the State Governments.

Accordingly the MoUD has formulated a scheme detailing the criteria and procedure for realising the grant to the ULBs applicable from 2017-18.

For next three years -- 2017-18, 2018-19 and 2019-20 --ULBs are required to prepare their Performance Card, present it to the State government for forwarding it to the MoUD to seek the grant, the sources added.

ULBs will send their performance card by September 30 each year to the State Administration as per the MoUD guideline which will in turn forward the report to the Ministry October 30 each year for the release of the grant.

Department of Urban Development will regularly monitor the performance of the ULBs and guide these institutions continuously to enable these institutions get the Grants from the Center, said an official.


Précis 2017
From asking his party men to ‘live a simple life and serve the people’ to taunting the BJP for its ‘crocodile tears’, Chief Minister and BJD supremo Naveen Patnaik has not only become politically invincible, he seems to be so in the coming years too.


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