Himachal ULBs to get grant-in-aid on monthly basis

SHIMLA, Himachal Pradesh: The Department of Urban Development has informed that the grant-in-aid to 61 urban local bodies in Himachal Pradesh will be provided on a monthly basis instead of one lump sum instalment or in advance.
Earlier in June, as per the recommendation of the 6th State Finance Commission (SFC), ₹153.64 crore were credited to civic bodies. But when the natural disaster ravaged the Himalayan city, the Urban Development Department wrote to the municipal commissioners, executive of the municipal councils and secretaries of the nagar panchayats, directing them to return 50 per cent of the grant, which is nearly ₹76.82 crore.
Earlier, the state finance department, in its August notification, issued instructions and financial guidelines for incurring expenditures. It was observed that the department is releasing grant-in-aid and subsidies under the state schemes either in one lump sum, every quarter or in advance. However, after careful consideration, the department has concluded that subsidies and grants-in-aid should be released monthly.
The department then sent another letter on September 23 requesting the urban local bodies to return 50 per cent of the grant-in-aid released earlier so that it could be released as a monthly instalment, informed the Additional Director of the Department of Urban Development in its letter to BJP leader Karan Nanda. Nanda has requested the department to reconsider this decision.
A sitting councillor of the municipal corporation made a similar request. He said that some urban local bodies have already prepared development plans and have spent the money, so it would be difficult for them to return 50 per cent of the grant amount.

A sitting councillor of the municipal corporation made a similar request. He said that some urban local bodies have already prepared development plans and have spent the money, so it would be difficult for them to return 50 per cent of the grant amount.