LUCKNOW: The Urban Development Department, Government of Uttar Pradesh has decided to disburse Rs 494 crore to cities with less than 10 lakh population for carrying out development work. According to officials from the department, Rs 244.5 crore will be provided to 200 municipal councils and Rs 143.5 crore to 517 town councils in the state. Rs 98 crore will be disbursed to 10 municipal corporations and Rs 8 crore to 13 Cantonment Boards.
Uttar Pradesh has 17 municipal corporations, only 10 among them have less than 10 lakh population. Officials said that the disbursement of funds to local bodies is crucial because the money comes under the untied grants head that can be used by the local government bodies for local needs and other expenses excluding the salary and establishment expenses. The Government of India provides tied grants for local bodies, which are used only for strengthening basic services like water supply, sanitation, and rainwater harvesting. The untied grants are used to empower local governance and provide better services to the citizens.