Under the recommendation of the Fifteenth Finance Commission (FC), Maharashtra is expected to receive a grant of Rs 70,375 crore over five years from 2021-22 to 2025-26. The state’s Economic Survey report for 2021-22 states that out of the total grant, Rs 7,067 crore will be earmarked for strengthening rural and urban health care systems.
Last year, the recommendations of the 15th Finance Commission were approved by the Center for providing assistance to the states for rural and urban local bodies.
According to the report, states are expected to get over 60 per cent grants for urban local bodies by 2025-26, as recommended by the Planning Commission.
The report suggests that 60 per cent of the funds in rural local bodies will be used for specific projects. In the case of urban local bodies, the grant will be disbursed into two categories—million-plus cities (population above 1 million) and non-million-plus (population less than 1 million) cities. According to the report, million plus cities are expected to receive performance-linked grants through the ‘Million Plus Cities Challenge Fund’ for ambient air quality, urban drinking water supply, sanitation and solid waste management.
As per the recommendations of the 15th Finance Commission, the ratio of the contribution of the Central and State Governments to the State Disaster Risk Management Fund is 75:25. Accordingly, the state is expected to get a grant of about Rs 17,803 crore from the Centre.
As of January 10, 2022, Maharashtra has received around Rs 6,000 crore, of which Rs 2,153.50 crore has been allocated for Panchayat Raj institutions. Another Rs 461 crore has been allocated for urban local bodies and Rs 2,577.60 crore for State Disaster Risk Management Fund.