Mumbai: Local and civic bodies across the state have heaved a much-needed sigh of relief as the central government has started releasing development funds that had been held back for the last four years because the bodies were under administrators’ rule. The funds were approved by the Fifteenth Finance Commission from 2022–23 onwards, but had not been released.
In the last few days, the state government has released Rs 606 crore to Municipal Councils, Municipal Panchayats, Zilla Parishads and Panchayat Samitis whose elections were held in the last few months.
The Fifteenth Finance Commission, constituted in 2021–22 for a five-year term, will complete its tenure this year. The Finance Commission is mandated to determine the share of funds from the central pool to be allocated to various states and local bodies. These funds come from taxes and levies collected by the central government.
The funds approved by the Commission had remained stuck in the central treasury as they could not be allocated in the absence of elected bodies. The state, despite the tenure of almost all local and civic bodies having ended, could not hold elections due to controversies over OBC reservation and the powers related to the formation of electoral wards. It was only after a decision by the Supreme Court that the election process was set in motion.
Of the Rs 606.63 crore released in the last few days, Rs 182 crore is under the Million Plus Cities programme approved by the Finance Commission for 2024–25. The programme aims to improve infrastructure and environmental quality in urban agglomerations.
Another Rs 273 crore has been earmarked for cities to undertake drinking water schemes, including rainwater harvesting, recycling, and solid waste management projects. As many as 398 civic bodies, including Municipal Corporations and Municipal Councils, are beneficiaries of this central assistance.
An allocation of Rs 182 crore has been made for Zilla Parishads, Panchayat Samitis and Village Panchayats across the state. The funds are being released to 12 Zilla Parishads, 325 Panchayat Samitis and more than 350 Village Panchayats whose elections were held last month. These funds were sanctioned by the Finance Commission in 2022–23 but were released only now.
