Grant 2nd instalment of funds for civic bodies, Velumani urges FM

In the memorandum, Velumani pointed out, “The 14th Finance Commission has earmarked for the year 201718, Rs 1,263.96 crore towards Basic Grant and Rs 365.37 crore as Performance Grant for Urban Local Bodies and Rs 1,516.12 crore towards Basic Grant and Rs.194.78 crore as Performance Grant for the Rural Local Bodies. The second instalment, amounting to Rs.631.98 crore, and Rs.758.06 crore for the Urban Local Bodies and Rural Local Bodies respectively and the Performance Grant are due for release by the Ministry. The entire grant amount sanctioned as first instalment has been released to the urban and rural local bodies for the implementation of basic amenities such as water supply, sanitation, waste management, street lights etc., and to settle various utility bills.” 

The Finance Ministry, while releasing the first instalment of the Basic Grant, had directed the state government to pursue the court case regarding the Local Bodies Election and apprise the ministry before the allocation of the second instalment is considered. 

Apprising the ministry of the status of the election, which is stalled due to the ongoing delimitation process and legal procedures associated with it, Velumani said, “Urban and Rural Local Bodies are in need of funds for the execution of basic amenities and non-release of the 2nd instalment of 14th Finance Commission Basic Grant and the Performance Grant will cause serious financial constraint on the Local Bodies.”