12th Finance

      The twelfth finance commission (TFC) was required to make recommendations on the measures to augment the consolidated fund of the states to supplement the resources of the municipalities on the basis of the recommendations of the State Finance Commissions (SFC). TFC has urged that states may require municipalities of over 1,00,000 population as per 2001 census to prepare comprehensive scheme on Solid Waste Management. 50% of the grant is earmarked for this purpose. Building capacity of municipalities in data base creation, adopting energy savings mechanism and development activities are the other components of this programme. This is 100% central assisted programme and the total grant earmarked under 12th Finance Commission devolution is Rs.323.00 crore and the period implementation of the recommendation of 12th Finance Commission is commending from 1.4.2005 and ending on 31.3.2010.

 

        

                             The grant is released in two equal installments every year at the rate of Rs.32.30 crore per installment. Componentwise break-up of the allocation of 1st installment is as under:

1 Solid Waste Management Rs. 16.15 cr.
2 Data base creation Rs. 1.61 cr.
3 Energy Savings Rs. 1.62 cr.
4 Untied grant Rs.12.92 cr.

  

          Grants released for Solid Waste Management is utilized for procurement of machinery and equipment by ULBs such as dumpers, tippers etc., required for SWM.

 

 

         Grant released for Data Base Creation is being utilized for procurement of computers of ULBs which coincides with implementation of reforms activities under Nirmala Nagara project and KMRP project.

 

 

         Grant released for implementation of energy savings is utilized by ULBs for procurement of energy savings devices in street lighting and water supplies.

 

 

         Untied grant is released for taking up development and maintenance of works.

 

 

        From the year 2006-07, GoI has also started releasing grants to ULBs under 12th Finance Commission Devolution for construction and maintenance of Roads and Bridges and Buildings of Urban Local Bodies. Annually the grant is released in two installment at the rate of Rs.22.325 crores for roads and bridges and Rs.0.59 crores for maintenance of buildings. The inter-se allocation of grant to ULBs for Roads and Bridges is based on road lengths.