Needed Rs 7.5 lakh crore for flagship urban projects: Ministry to finance commission
NEW DELHI: The Centre would require approximately Rs 7.52 lakh crore for the ongoing flagship urban schemes for the five year period during 2020-21 and 2024-25, the urban affairs ministry has told the 15th Finance Commission.
During a consultation with the members of the Finance Commission on Monday, the ministry also suggested that the municipalities and urban local bodies need more than four-fold increase in fund during the five year period from what was provided during the 14th Finance Commission period. It has suggested providing around Rs 3.5 lakh crore for the municipalities to run their shows, which is estimated around 2.73% of the net central taxes for 202021 and 2024-25 period.
TOI has learnt that the ministry has told the commission that the Centre plans to double the number of Smart Cities to 200 during the next five years and hence would require about Rs 1.4 lakh crore to provide central assistance. Similarly, it plans to bring smaller towns and cities under the AMRUT scheme, which focuses on improving the water supply and sewage management system. This would require about Rs 2.5 lakh crore.
Currently, the scheme covers only 500 cities and towns that have more than one lakh population.
According to sources, the government would require about Rs 1.1 lakh crore under the PM Awas Yojna to provide financial assistance to the urban poor and also interest subvention to the middle-income groups. Swachh Bharat and urban livelihood mission would require about Rs Rs 60,000 crore.
Sources said the Centre has sought more funds for states and urban local bodies (ULBs) since these entities have lost a large chunk of their revenues due to the implementation of the Goods and Service Tax (GST). Fund crunch has a direct link to the service delivery of municipal bodies.