By KK Pandey
The Fifteenth Finance Commission (FFC) has duly recognised the function of urbanisation in national financial improvement with a certain concentrate on air high-quality, water and sanitation, wellness emergencies (diagnostic infrastructure), incubation of new towns on a pilot basis, and shared information centres.
The all-time higher allocations incorporate Rs 1,21,055 crore (against Rs 87,144 crore by the Fourteenth FC) for urban nearby bodies (ULBs) for 2021-26, along with further allocation for the urban sector on account of wellness emergencies (Rs 26,123 crore), incubation of towns (Rs 8,000 crore) and shared service centres (Rs 450 crore).
The ULB allocations are twofold: the Million-Plus Cities Challenge Fund of Rs 38,196 crore for 44 urban agglomerations (UAs) with 67 one-lakh-plus towns and 1,048 towns that have population significantly less than 1 lakh, and Rs 82,859 crore for other towns with population significantly less than 1 lakh like 1,048 towns currently covered below the Challenge Fund providing specific concentrate on the city area to stimulate the economy.
The division of funds for UAs covers ambient air high-quality (32%) and service-level benchmark for drinking water and strong waste management (68%). Other towns with below 1 lakh population will get untied funds (40%) for 18 subjects as supplied in Schedule XII except for salaries and tied funds (60%) for sanitation and strong waste management (30%) and drinking water, rainwater harvesting and water recycling (30%). UAs are also anticipated to comply with efficiency assessment as year-smart program for quantification of year-smart improvement as per the Air Quality Index. In case of non-achievement, 50% of unutilised balance shall be allocated to much better performing towns according to improvement levels. Funds for wellness emergencies are meant for urban wellness and wellness centres (Rs 24,028 crore) and urban PHCs (Rs 2,095 crore). Incubation of cities is meant for eight cities at Rs 1,000 crore per city to be offered on the basis of interstate competitors to eight states for one city every single.
This quantum jump in allocation will go a extended way in minimising gaps (needing eight time improve in per capita municipal expenditure by 2030: McKinsey report) in the urban infrastructure supplied it is made use of as seed capital and has synergy with other allocations for the urban sector by the government of India, states and other stakeholders. Accordingly, a properly-planned comply with-up agenda should really be adopted by states enabling (1) ULBs to utilise the grants as intended and (2) linking allocation with funds readily available from other sources. The agenda should really incorporate:
—Enable ULBs to qualify entry-level benchmarking and efficiency assessment. Additional dispensation should really be created by states for accounting and asset management reforms as per Article 243Z of the Constitution to retain the auditing, budgeting and monetary statements prepared as per specifications. Also, prepare SOPs, recommendations and checklists working with Mission Karmayogi/urban digital portal of the government
—Synchronise NCAP (National Clean Air Programme) funds and central government missions for air high-quality and water and sanitation which are interconnected (such as building and demolition waste and drainage plants). The Jal Jeevan Mission also offers funds for water and sanitation covering rejuvenation of water bodies to augment transit provide, green spaces, decrease floods, circular economy of water, water balance program and 20% of water demand from reuse
—The function of further-budgetary sources at the ULB level should really be duly recognised to improve the availability of funds for all the elements with a specific concentrate on wellness emergencies, shared services and processing of waste. Corporate social duty (CSR) funds should really also be looked into. Local elasticity at the ULB level has a vast possible as is currently becoming noticed in quite a few forward-searching cities such as Bengaluru, Pune and Nagpur (for waste processing) and Ahmedabad for C&D waste, and so on
—As a lot of ULBs do not carry out water provide, tied funds for towns without having the duty of water provide should really be diverted for much better strong waste management and water harvesting/revival of water bodies
—New city incubation grants and competitors should really be used to create other cities in the significantly less/least urbanised regions in states.
The author is coordinator, Centre for Urban Studies, IIPA, New Delhi. Views are individual