Centre asks states for report on funds utilisation for ULBs

In a bid to ensure that funds meant for Urban Local Bodies (ULBs) reach them, the Centre has asked states to prevent diversion and misuse of Finance Commission grants for ULBs and sought utilisation report for 2015-16 by the end of next month.
The government also directed the states to ensure that funds for ULBs are utilised only for improving delivery of basic urban services like sanitation, water supply, solid and liquid waste management, storm water drains and maintenance of community assets.
Urban Development Ministry has issued guidelines in this regard for "strict compliance" by the states after Union Minister M Venkaiah Naidu had reviewed the utilisation of 14th Finance Commission (FFC) grants, an official release said today.

Meanwhile, Urban Development Ministry Secretary Rajiv Gauba, in his communication to the states/UTs, has "sought utilization reports in respect of FFC grants for the year 2015-16 by the end of next month," it said.
He also asked the states/UTs to prepare annual plans for city-level utilization of FFC grants linked to improving basic urban infrastructure till 2019-20.
Gauba also asked the states/UTs to ensure transfer of grants to ULBs within 15 days of receipt of the same from the central government, otherwise interest should be paid for the delays, the release said.
The 14th Finance Commission awarded total grants of Rs 87,144 crore to ULBs, a threefold increase over the 13th Finance Commission.

States/UTs have also been asked to ensure effective monitoring of utilization of FFC grants at the level of Chief Secretaries besides concurrent evaluation by third party, the release said.