FC grants to ULBs increased by 33.4%; urban development budget 19.2% higher in 2024–25

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New Delhi: In the newly presented budget of the Government of India, the Urban Local Bodies (ULBs) will get grants of ₹25,653 as per the recommendation of the 15th Finance Commission. Expenditure under the urban development head is proposed to increase by 19.2 percent in the 2024–25 budget.

The amount given to urban local bodies under the recommendation of the 15th Finance Commission is 33.4 per cent higher than the amount allocated to civic bodies in 2023–24. This amount is 0.5 per cent of the total budget.

Along with the finance commission grants to urban bodies, the budget allocation for the urban development sector has also increased this time. As per the revised estimates of the expenditure incurred in 2023–24, the government spent ₹69,271 crore on the urban development sector in the previous year. This expenditure is expected to increase by 19.2 per cent in the financial year 2024–25. The amount allocated for urban development in budget 2024–25 is 82577 crore, which is 1.7 per cent of the total expected expenditure.