Release pending Rs 3000 crores grant to local bodies, minister urges Centre

According to the 14th Finance Commission, a basic grant of Rs 1263.96 crore and performance grant of Rs 365.37 crore was allocated for the urban local bodies, while the rural local bodies had access to a basic grant of Rs 1516.12 crore and a performance grant of Rs 194.78 crore. 

However, while sanctioning the first instalment of the basic grant, the Ministry of Finance had stipulated that the second instalment would be released only after the State government pursues the court case regarding the local body election and appraises the ministry. 

In an memorandum, Velumani informed the Union Finance Minister that the local body elections have been delayed due to various litigations and the ongoing delimitation of wards. The State government has allocated Rs 172.27 crore in the 2018-19 budget to conduct these elections. 

Velumani added that the Ministry of Housing and Urban Affairs has already recommended the Ministry of Finance to release the pending second instalment for 2017-18 to urban local bodies in Tamil Nadu. 

The minister had requested the ministry to expedite the pending amount of Rs 3558.21 crore (the second instalment of basic grant of Rs 1390.04 crore and performance grant of Rs 560.15 crore for 2017-18 and the first instalment of basic grant of Rs 1608.02 crore to urban local bodies for this financial year). 

Velumani stressed that the early sanctioning of funds will aid the development of Tamil Nadu. Lok Sabha deputy speaker M Thambidurai and Minister of Electricity P Thangamani were also present during the meeting.