The Housing Ministry proposed to the Finance Commission to increase the allocation of Urban Municipal Bodies by four times higher.

What are Urban Local Bodies?

Urban Local Bodies (ULBs) are small local bodies that administer or operate a specific town or city. Urban municipal authorities have a long list of roles that the State governments assign to them. The responsibilities are generally concerned with public health, welfare, regulatory functions, public security, public infrastructure and development.

Proposal for Hike in Allocation to Urban Municipal Bodies

At its Commission meeting on 17 July, the ministry recommended an increased allocation of Rs 87,143 crore to Rs 3,48,575 crore for urban municipal bodies, in which Minister Hardeep Singh Puri and senior ministry officials attended.

The Durga Shanker Mishra, Secretary of Housing and Urban Affairs Ministry, submitted the updated MoHUA Memorandum to a committee for the purposes of Report 2020-2021 to 2025 - 2026 of the Fifteenth Finance Commission (XVFC).

It also proposed that the Minister of Health and Family Welfare provide a separate grant for urban public health infrastructure along with a separate grant to the Environment Ministry for the regulation of the ambient air quality in over one million cities.

Among the non-financial recommendations, suggestions were made to the commission for modifications in the mandatory terms of property tax. Also requested for COVID-19 measures, like separate public health services grants to urban local bodies and to provide 9.4% of central taxation.

By: Shailaja K